S&P rates API Technologies loans B

S&P said it assigned a B issuer credit rating to API Holdings III Corp., the borrower affiliated with AEA Investors' agreement to acquire API Technologies Corp.

The agency also said it assigned a B rating and 3 recovery rating to the company's first-lien credit facility consisting of a $50 million revolver and $245 million first-lien term loan.

AEA Investors recently signed an deal to acquire API Technologies in a transaction financed with $335 million of new term loans, the agency said.

The acquisition will result in adjusted leverage of 9.6x to 10x, S&P said.

The stable outlook reflects an expectation that the company's debt leverage will decrease significantly to 6.2x to 6.6x in 2020, the agency said.

S&P said it expects credit ratios will continue to improve as earnings increase due to growth in revenues and reduced operating costs.

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