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Prospect News home > News index > List of issuers C > Headlines for Citadel Plastics Holdings Inc. > News item |
S&P rates Citadel Plastics loans BB-, B-
Standard & Poor's said it assigned its B corporate credit rating to Citadel Plastics Holdings Inc.
The outlook is stable.
At the same time, the agency assigned its BB- senior secured debt rating (two notches above the corporate credit rating) to Citadel's $30 million six-year revolving credit facility and $300 million six-year term loan. The recovery rating is 1, indicating an expectation of very high (90% to 100%) recovery in the event of a payment default.
S&P also assigned its B- issue-level rating (one notch below the corporate credit rating) to the company's $100 million second-lien seven-year term loan. The recovery rating is 5, indicating our expectation of modest (10% to 30%) recovery in the event of a payment default.
The company plans to use the proceeds from the debt issuance to fund the acquisition of Composites Group (unrated), refinance existing debt and pay transaction fees and expenses.
"The ratings on Citadel reflect its significant exposure to cyclical end markets, its limited diversity, the aggressive financial policies of its private equity sponsor, and our expectation of highly leveraged financial metrics," S&P credit analyst Seamus Ryan said in a news release.
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