S&P affirms Cooper Tire on amended credit

S&P said it affirmed the BB rating on Cooper Tire & Rubber Co.'s senior unsecured notes.

The recovery rating on this debt is 4, indicating 30% to 50% expected default recovery.

The company is amending its credit agreement to extend the maturity date of its revolving credit facility to June 27, 2024, the agency said, and increase the commitment of the revolver by $100 million to $500 million.

The company also is adding a $200 million delayed-draw term loan due June 27, 2024 to the facility.

The proceeds from the new term loan will be used to repay the amount outstanding under its existing 8% senior unsecured notes due in December 2019, S&P said.

The BB issuer credit rating on Cooper Tires reflects the company's level of debt leverage and cash flow, the agency said, as well as its competitive position in both the replacement and original equipment tire markets.

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