S&P rates Emerald, loans B-

S&P said it gave B- ratings to Emerald Technologies (U.S.) AcquisitionCo Inc. and its planned $45 million revolving credit facility and $250 million first-lien term loan. The recovery rating is 3.

Emerald is being acquired by Crestview Partners LP, which will use the term loan and cash equity.

“Emerald has significant customer concentration; its two largest customers combine for more than 50% of its revenue. We believe this customer concentration could pressure Emerald's credit metrics in cases where the top customer sees decline in demand because of the historical volatility in the semiconductor industry or leaves Emerald for another EMS competitor,” S&P said in a press release.

The agency also assigned a stable outlook, reflecting the expectation that Emerald will improve its leverage to the high-4x area in 2022, supported by good growth expectations and stable EBITDA margins.

© 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.