S&P upgrades Entegris, rates loan BBB-

S&P said it raised its issuer credit rating on Entegris, Inc. to BB+ from BB. The outlook is stable.

At the same time, S&P assigned a BBB- issue-level and 2 recovery ratings to the company's proposed first-lien credit facilities, which consist of a proposed $300 million revolving credit facility and a $200 million term loan B. The 2 recovery rating indicates an expectation of substantial (70%-90%; rounded estimate: 85%) recovery of principal in the event of a payment default.

S&P also raised the issue-level rating on the senior unsecured notes to BB from BB-. The 5 recovery rating is unchanged and indicates an expectation for modest (10%-30%; rounded estimate: 20%) recovery in the event of a payment default.

The company will use the new $300 million revolver due 2023 and the new $200 million term loan B due 2025 to replace its current $75 million ABL revolver (unrated) due April 2019 and refinance its existing $109 million outstanding term loan due 2021. In addition, the proposed refinancing will add $89 million of cash to the company's balance sheet, and cover transaction fees and expenses.

“The rating action reflects the company's consistent improvement in operating performance as revenues have increased by approximately 16% year over year in the first half of fiscal 2018 with double-digit revenue growth across all three reporting segments,” S&P said in a news release.

© 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.