S&P: Chromaflo loans B, CCC

S&P said it assigned a B- corporate credit rating to ASP Chromaflo Holdings II LP.

The agency also said it assigned a B rating and 2 recovery rating to the company’s proposed $345 million first-lien term loan and $50 million credit facility.

The co-borrowers will be ASP Chromaflo Intermediate Holdings Inc. and ASP Chromaflo Dutch I BV.

S&P also said it assigned a CCC rating and 6 recovery rating to the company’s proposed $135 million second-lien term loan under which the borrower will be ASP Chromaflo Intermediate Holdings.

The outlook is stable.

The agency also said it will withdraw the corporate credit rating on Chromaflo Acquisitions Co. LP, along with the ratings on existing debt following the closing of the proposed acquisition and the pay-down of debt.

ASP Chromaflo Holdings II is a newly created entity that will be the holding company for the business currently held by Chromaflo Technologies Holdings Corp. following the proposed acquisition of this business by private equity sponsor American Securities LLC, S&P said.

The stable outlook reflects an expectation that the company will achieve and maintain satisfactory operating profitability and generate sufficient free cash flow to support a financial profile consistent with its ratings, the agency explained.

The company is expected to maintain a very aggressive financial policy and pursue modest size acquisitions and shareholder rewards, S&P added.

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