S&P rates Entegris loan BB+, notes BB-

Standard & Poor's said it assigned a BB corporate credit rating to Entegris Inc., along with a BB+ rating and 2 recovery rating to its proposed $460 million senior secured first-lien term loan due 2021.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The agency also said it assigned a BB- rating and 5 recovery rating to the proposed $360 million senior unsecured notes due 2022. The 5 recovery rating indicates 10% to 30% expected default recovery.

The outlook is stable.

The ratings reflect the company's highly cyclical industry conditions for semiconductor-related products, high customer concentration risk and pro forma leverage in the low-2x range, said David Tsui, an S&P analyst.

The ratings also consider its fair business risk based on its exposure to the highly volatile semiconductor manufacturing industry and limited financial resources compared to that of some of its direct competitors, Tsui said in a press release.

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