S&P cuts Rayovac loan recovery to 3

Standard & Poor's affirmed its ratings on Rayovac Corp., including its B+ corporate credit rating, B+ senior secured bank loan rating and B- senior subordinated debt rating. In addition, the recovery rating on Rayovac's senior secured bank facility was revised to 3 from 2.

The outlook is negative.

S&P said the rating actions result from Rayovac's planned acquisition of Tetra Holdings GmbH for €415 million or a 10.5x EBITDA multiple. The company will use the $500 million add-on feature under its bank facility to fund the majority of the transaction.

S&P said the ratings on Rayovac reflect the company's very aggressive acquisition history, high leverage, and integration risks associated with the United Industries and Tetra acquisitions. These risks are offset somewhat by the company's more diversified product portfolio as a result of the acquisitions and improved operating performance in 2004.

© 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.