S&P lowers Entegris loan ratings

S&P said it lowered the issue-level ratings on Entegris Inc.'s planned $2.5 billion term loan and $575 million revolving credit facility to BB+ from BBB- and revised the recovery ratings to 3 from 2, reflecting a lower share of unsecured debt in the capital structure and decreasing cushion supporting the secured debt in default. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 65%) recovery in default.

“The total quantity of debt involved in the financing of the acquisition will remain unchanged and the shift of $600 million to secured debt from unsecured debt does not materially impact the company's credit metrics, thus our BB+ corporate credit rating and stable outlook on Entegris are unchanged,” S&P said in a press release.

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