S&P gives B to Canister, loan

S&P said it assigned B ratings to Canister International Group Inc. and its proposed $80 million senior secured revolving credit facility due 2024 and $445 million senior secured term loan due 2026. The agency assigned a 3 recovery rating indicating S&P’s expectation for meaningful (50%-70%; rounded estimate: 60%) recovery of principal in the event of a payment default.

“Our B issuer credit rating on Canister reflects its niche position in the caps and closure subsector and financial sponsor ownership with moderately high leverage. Following the transaction, we expect a pro forma adjusted debt to EBITDA of about 5x,” said S&P in a press release.

The outlook is stable. “The stable outlook on Canister reflects our expectation for relatively favorable end-market conditions due to stable economic growth and healthy demand from beverage sales, which will allow the company to improve profitability and reduce leverage,” the agency said.

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