S&P ups Entegris loan, gives notes BB-

S&P said it assigned its BB- issue-level rating to Entegris Inc.'s new $450 million senior unsecured notes. The 5 recovery rating indicates an expectation for modest (10%-30%; rounded estimate: 15%) recovery of principal in the event of a payment default.

Proceeds will be used to refinance the firm's existing $360 million of unsecured notes.

The agency also raised the rating on the company's senior secured first-lien term loan to BBB- from BB+ and revised the recovery rating to 1 from 2, indicating an expectation for full (90%-100%; rounded estimate: 95%) recovery.

The BB corporate credit rating and stable outlook are unchanged.

Although the transaction will raise Entegris's total funded debt to $634 million and raise leverage modestly to about 1.2x, S&P said it expects leverage to decline going forward as EBITDA margins improve and the company continues to accelerate principal payments on the first-lien term loan.

© 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.