S&P rates Aruba Investments loan B+, notes B

Standard & Poor’s said it assigned a B corporate credit rating to Aruba Investments Inc., the parent holding company of Angus Chemical Co.

The outlook is stable.

S&P also said it assigned a B+ rating and 2 recovery rating to the company’s proposed $505 million secured term loan B and $65 million revolving credit facility.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The agency also said it assigned a B rating and 4 recovery rating to the company’s proposed $225 million senior unsecured notes. The 4 recovery rating indicates 30% to 50% expected default recovery.

The stable outlook reflects high margins, lack of direct competition for the majority of the company’s product offerings and an expectation for steady operating performance, S&P said.

Given the company’s niche market, the agency said it does not expect that the company will pursue sizable acquisitions.

Over the next few quarters, the agency said it expects the company’s adjusted debt-to-EBITDA ratio to be less than 7x.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.