S&P rates new Avantor loan B

S&P said it affirmed the B corporate credit rating on Avantor Performance Materials Holdings SA.

The agency also said it affirmed the B rating and 3 recovery rating on the company's existing first-lien term loan and revolving credit facility following the issuance of the company's proposed $400 million incremental term loan and increase of the commitment under the company's revolving credit facility to $75 million based on preliminary terms and conditions.

S&P also said it assigned the B rating and 3 recovery rating to the proposed $170 million delayed draw first-lien term loan.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The agency also said it affirmed the CCC+ rating and 6 recovery rating on the company's existing second-lien term loan. The 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is stable.

The proposed debt is to be issued by Avantor Performance Materials Holdings Inc. and guaranteed by Avantor Performance Materials Holdings SA, S&P said.

The stable outlook reflects a view that, following the proposed transactions, the combined company's credit measures should strengthen over the next year, the agency said.

This is due to expected EBITDA growth from successfully implemented cost-saving and price-improvement initiatives, S&P said, as well as a recovery from operational setbacks," he added.

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