S&P gives Filtration facilities B

S&P said it assigned its B issue-level rating to Filtration Group Corp.'s proposed first-lien credit facilities, which include a $150 million revolving credit facility due 2023 and a $1.65 billion term loan due 2025.

The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

Filtration Group intends to use the proceeds from the issuance to refinance its existing term loans and $100 million revolving facility and to finance the acquisition of two filtration businesses.

“We expect the company's debt leverage to increase moderately but remain well below our 7.5x downgrade trigger, because of the proposed acquisitions,” the agency said in a news release.

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