S&P rates Closure Systems loan B

S&P said it assigned B issue-level and 3 recovery rating (50%-70%; rounded estimate: 55%) to Closure Systems International Group Inc.'s planned $500 million first-lien term loan.

The company plans to use the loan, along with $5 million of cash from its balance sheet, to refinance its $496 million first-lien term loan, also rated B with a 2 recovery rating, and pay related transaction fees.

“We view the proposed transaction as slightly positive for CSI's credit quality because it will increase the availability under its revolving credit facility to $120 million (from $80 million), modestly improve the pricing on its term loan, and push out the maturities of both facilities by an additional two years (with the revolver due in September 2028 and the term loan due in March 2029),” S&P said in a press release.

The outlook is stable.

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