S&P rates Altar MidCo B, loans B, CCC+

S&P said it gave Altar MidCo Inc. a B issuer rating. The agency also assigned B issue and 3 recovery ratings to the company’s planned first-lien credit facilities and CCC+ issue and 6 recovery ratings, to the proposed second-lien term loan.

The first-lien facilities will consist of a $175 million undrawn revolving credit facility due in 2027 and an $825 million first-lien term loan due in 2029. The second-lien loan will be a $205 million term loan due in 2030.

Thomas H. Lee Partners agreed to buy the semiconductor solutions business of Brooks Automation for about $3 billion. The firm will use the term loans and new equity to finance the deal. Altar Midco will be the new holding company for the business.

“The B rating reflects our expectation that strong growth prospects should allow steady deleveraging in the near term in spite of high leverage of approximately 6x at close,” S&P said in a press release.

The outlook is stable.

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