S&P rates Fastener facilities B+, CCC+

S&P said it assigned its B corporate credit rating to Fastener Acquisition Inc. The outlook is stable.

The agency also assigned its B+ issue-level rating to the company’s proposed $35 million revolving credit facility due 2023 and $225 million senior secured first-lien term loan due 2025. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%; rounded estimate: 75%) to lenders in the event of a default.

In addition, S&P assigned a CCC+ issue-level rating to the company's proposed $85 million second-lien term loan due 2026 with a 6 recovery rating, indicating negligible recovery (0%-10%; rounded estimate: 0%).

The agency said the ratings on Fastener reflect a view of the company's very narrow niche product and packaging focus.

The ratings also reflect the company's relatively small size, lack of geographic diversity with nearly all sales in the United States and somewhat cyclical demand for its fastener products, S&P said.

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