S&P rates Filtration loan B

S&P said it assigned its B issue-level rating and 3 recovery rating to Filtration Group Corp.'s proposed €175 million incremental first-lien term loan due March 2025. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in default.

“The debt-financed acquisition will likely increase FGC's debt leverage. However, we believe the company's performance in the second half of 2020 has been better than we previously expected due to the strength of its life science end markets and management's cost-reduction activities. Specifically, we estimate its S&P-adjusted debt leverage will be approximately 7.5x as of the end of 2020 before falling to about 7x or below by the end of 2021. Therefore, our B issuer credit rating and stable outlook on FGC are unchanged,” S&P said in a press release.

The company plans to use the proceeds to acquire a filtration business.

© 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.