S&P rates CeramTec loans B, notes CCC+

S&P said it gave CTEC I GmbH (CeramTec) a B issuer rating. The agency also assigned B issue and 3 recovery ratings to the €1.48 billion equivalent seven-year first-lien term loan B and the €250 million 6.5-year revolver issued by CTEC III GmbH. Concurrently, S&P rated CTEC II GmbH’s €465 million of eight-year senior unsecured notes CCC+ with a 6 recovery rating.

The agency withdrew its ratings on CeramTec BondCo GmbH and the issue ratings on the senior secured facilities issued by CeramTec AcquiCo GmbH at the issuers' request; their debt was repaid using the proceeds from newly issued debt.

BC Partners and Canada Pension Plan Investments jointly acquired CeramTec for an enterprise value of about €3.8 billion. To finance the transaction, the two investors raised about €1.95 billion of debt, leading to higher near-term leverage.

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