S&P rates TPC Group notes B

Standard & Poor's said that its ratings on TPC Group LLC, including the B+ corporate credit rating, remain on CreditWatch with negative implications, where they were placed on Aug. 27.

The initial CreditWatch placement followed the announcement that TPC has entered into an agreement to be acquired by First Reserve Corp. and SK Capital Partners at $40 per share.

The agency said the ratings have remained on CreditWatch, as the proposed acquisition price has been increased in light of nonbinding offers of interest from a second interested party, Innospec Inc.

S&P said it also assigned its B issue-level rating to TPC Group, Inc.'s proposed $655 million senior secured notes. The agency assigned a recovery rating of 4, indicating an expectation of average recovery in the event of a payment default.

The B+ issue-level ratings on the existing $350 million senior secured notes remain on CreditWatch with negative implications.

"The CreditWatch update follows the announcement that Innospec was withdrawing its offer to acquire TPC, and that the company's Board of Directors urged its shareholder to vote for the acquisition by First Reserve and SK Capital at $45 per share," said S&P credit analyst Danny Krauss in a news release.

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