S&P rates Vantage Specialty loan B-

S&P said it rated Vantage Specialty Chemicals Inc.’s planned $820 million first-lien term loan due October 2026 B- with a 3 recovery rating. The agency also revised the company’s outlook to positive from stable and affirmed the B- issuer rating.

The company will repay its first-lien term loan and second-lien term loan. Concurrently, the company plans to amend its revolving credit facility by upsizing it to $100 million from $75 million and extending its maturity to April 2025 from January 2024. S&P said it will withdraw its ratings on the loans once they are repaid.

“The proposed transaction will extend Vantage's significant near-term debt maturities by up to two years, reducing refinancing risk.

“This makes the proposed transaction credit positive. Based on preliminary debt agreements, we expect interest margins will be largely unchanged,” S&P said in a press release.

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