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S&P downgrades Tekni-Plex
S&P said it lowered its corporate credit rating on Trident TPI Holdings Inc. (Tekni-Plex) to B- from B.
The outlook is stable.
At the same time, the agency lowered the issue-level rating on the company’s senior secured credit facilities to B- from B. The recovery rating remains 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in a payment default scenario.
Additionally, S&P lowered the issue-level rating on the company’s senior unsecured notes to CCC from CCC+. The recovery rating remains 6, indicating an expectation of negligible (0%-10%; rounded estimate: 5%) recovery.
Tekni-Plex entered into a definitive agreement to acquire two companies for $126 million including fees and expenses.
“The downgrade reflects a view that the incremental debt needed to fund the acquisitions will keep Tekni-Plex's credit metrics elevated, particularly its adjusted debt-to-EBITDA ratio,” S&P said in a news release.
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