S&P rates Albea notes B+

Standard & Poor's said it assigned its preliminary B+ long-term corporate credit rating to Albea Beauty Holdings SA. The outlook is stable.

At the same time, the agency said it assigned its preliminary issue rating of B+ to the proposed $650 million equivalent senior secured notes to be issued by Albea Beauty in two tranches. The recovery rating on these notes is 4, indicating an expectation of average recovery in the event of payment default.

In assigning the preliminary ratings, S&P said it assumed that Albea would successfully acquire Rexam plc's cosmetics business. This transaction remains subject to regulatory approvals.

The agency said it understands that the transaction will be financed using the proceeds from a $650 million equivalent high-yield senior secured note issuance. S&P estimates that the group's S&P-adjusted debt will be below $700 million when the transaction closes.

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