S&P lifts Inteva loan rating to B+

S&P said it raised the rating on Inteva Products LLC's downsized term loan to B+ from B and revised the recovery rating on the loan to 2 from 3.

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

The higher recovery rating primarily reflects the reduction of the company's outstanding debt in a hypothetical default scenario, S&P said.

The company downsized its term loan to $180 million from $250 million, shortened the duration to 2021 instead of 2023 and cancelled the previously planned dividend distribution to its financial sponsor, the Renco Group, the agency said.

The revised deal also will increase the company's interest expenses by roughly $2 million with an amortization requirement of $8 million at the launch of the transaction, S&P said.

Following the downsizing, the agency said it expects that the company's credit metrics will improve modestly with a debt-to-EBITDA metric of between 2.0x and 2.5x in 2016 and 2017.

The stable outlook reflects an expectation that the demand for Inteva's products will remain steady given its existing backlog and the generally supportive industry conditions, S&P added.

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