S&P rates GEON B, loans B+

S&P said it assigned a B rating to GEON Performance Solutions LLC and B+ and 2 recovery ratings to its expected senior secured credit facility comprised of a revolver and a term loan.

“We are rating GEON following the dividend recapitalization of its capital structure. SK Capital purchased the Performance Products & Solutions business (now GEON) of PolyOne Corp. (now Avient Corp.) in October 2019 for $775 million,” S&P said in a press release.

“The ratings reflect Geon's leading market positions in its niche segments, solid profitability, limited geographic diversity (primarily focused in North America), and moderate end-market diversity,” the agency said.

GEON plans to refinance the debt incurred at the time of the acquisition and fund a dividend to SK Capital.

The outlook is stable, mirroring a forecast it will maintain credit measures appropriate for the rating, including debt to EBITDA in the 4x-5x range, S&P said.

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