S&P rates TricorBraun loan B, notes CCC+

S&P said it assigned a B corporate credit rating to TricorBraun Holdings Inc. and TCB Holdings II Corp.

The agency also said it assigned a B rating and 3 recovery rating to the company's proposed $735 million first-lien secured credit facilities, which comprise a $75 million revolver due 2021, $600 million term loan due 2023 and $60 million delayed draw term loan due 2023.

The 3 recovery rating reflects 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to TricorBraun’s proposed $350 million second-lien notes. The 6 recovery rating reflects 0 to 10% expected default recovery.

The outlook is negative.

The agency also said it revised the outlook on TricorBraun Inc. to negative from stable and affirmed all of its existing ratings. S&P said it intends to withdraw these ratings after transaction because the debt will be refinanced.

The ratings reflect a view that TricorBraun’s adjusted debt-to-EBITDA ratio will rise to 7.7x after the transaction from 7x as of Sept. 30, the agency said.

The ratings also consider its solid market position in the less-cyclical health care, personal care and beverage-end markets, S&P said.

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