S&P: HCP Global loans B, CCC+

Standard & Poor’s said it assigned a B long-term corporate credit rating to HCP Global Ltd.

The agency also said it assigned a cnBB- long-term Greater China regional scale rating to HCP Global.

S&P also said it assigned a B rating to the company’s proposed first-lien seven-year $230 million senior secured term loan and five-year $50 million revolving credit facility.

The agency also assigned a CCC+ rating to the company’s proposed eight-year $100 million senior secured second-lien term loan.

S&P also assigned a cnBB- long-term Greater China regional scale ratings to the proposed first-lien term loan and revolving credit facility and cnB long-term Greater China regional scale ratings to the proposed second-lien term loan.

The proceeds, along with cash, will be used to fund a dividend to its private equity owner, repay existing term loan debt and pay for transaction fees and expenses, the agency said.

The outlook is stable.

The ratings reflect the company’s small scale, its exposure to volatility in raw material costs and the market’s fragmentation, S&P said.

However, HCP has a good position in a niche market and a somewhat diverse customer base, the agency added.

The company also has strong profitability and good geographic diversity in terms of income, S&P said.

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