S&P lowers recovery on BBB Industries loans

S&P said it revised its recovery rating on BBB Industries US Holdings Inc.'s $295 million first-lien term loan due 2021 to 4 from 3 following the company's recent $100 million incremental add-on (increasing the loan amount to $395 million). The 4 recovery rating indicates an expectation for average (30%-50%; lower half of the range) recovery in the event of a default.

At the same time, the agency revised its recovery ratings on the company's $70 million revolver due 2019 and $50 million incremental first-lien term loan due 2021 to 4 from 3.

All other ratings on BBB Industries are unchanged.

The company will use the proceeds from the incremental add-on to pay off its $100 million second-lien term loan. S&P said it will likely withdraw its ratings on the second-lien term loan after it is paid off.

S&P said it lowered the recovery rating on the first-lien term loan to reflect the lower recovery prospects due to the increase in its amount of first priority debt.

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