S&P rates Trinseo loans BB+, notes BB-

S&P said it assigned its BB+ issue-level rating to Trinseo SA's proposed senior secured credit facilities, consisting of a $375 million revolver due 2022 and $750 million term loan due 2024. The recovery rating is 1, indicating an expectation of very high (90% to 100%; rounded estimate: 95%) recovery in the event of a payment default.

The agency also assigned its BB- issue-level rating to the company's proposed $450 million of unsecured notes due 2025. The recovery rating is 3, indicating an expectation for meaningful (50% to 70%; rounded estimate: 60%) recovery in the event of a payment default.

The borrowers issuing the debt is Trinseo Materials Operating SCA and Trinseo Materials Finance Inc.

The company plans to use proceeds from the new debt issuance to repay outstanding debt.

“We expect to withdraw ratings on the existing secured and unsecured debt when they are repaid in full upon close of this transaction,” S&P said in a news release.

The agency’s existing ratings on Trinseo, including the BB- corporate credit rating, are unchanged. The outlook is stable.

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