S&P trims ACProducts

S&P said it trimmed ACProducts Inc.’s issuer rating to B- from B and assigned B- and CCC issue-level ratings to Victors Intermediate Holding II Corp.'s planned $1.4 billion first-lien term loan and $550 million senior unsecured notes, respectively.

Platinum Equity Advisors is acquiring ACProducts in a deal that will boost ACProduct’s adjusted debt by 50%, the agency said. Platinum Equity plans to contribute $764 million in equity to fund the $2.65 billion purchase. ACProducts also plans to secure a $200 million asset-based lending facility, expected to be undrawn at closing for general corporate purposes.

“The proposed capital structure will result in adjusted leverage of about 8x by year-end 2021, which we view as commensurate with a B- rating. We believe the proposed capital structure indicates the company's aggressive financial policies, such that we expect adjusted debt levels to increase by more than 50%. This will weaken credit measures and heighten credit risk,” S&P said in a press release.

The outlook is stable, mirroring the view that a robust end market will mitigate the higher debt load, the agency said.

© 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.