S&P rates Tailwind Smith Cooper loans B, CCC+

S&P said it assigned a B issuer credit rating to Tailwind Smith Cooper Holding Corp., with a stable outlook.

The agency also said it assigned a B rating with a 3 recovery rating to the first-lien term loan. The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating with a 6 recovery rating to the second-lien term loan. The 6 recovery rating indicates 0 to 10% expected default recovery.

Tailwind Capital Group LLC has entered into a definitive agreement to acquire Anvil International LLC.

As part of the transaction, Anvil International will combine with Smith Cooper International Inc., currently owned by Tailwind Capital Group, and each entity will be subsidiaries of Tailwind Smith Cooper Intermediate Corp., which will issue the proposed new debt.

Tailwind Group will fund the transaction with a proposed $690 million first-lien term loan due 2026 and $150 million second-lien term loan due 2027, along with new cash equity from Tailwind Capital and rollover Smith Cooper equity, totaling about $453 million in the aggregate, S&P said.

The company also will have a new $100 million asset-based lending revolving credit facility, which will be unrated, the agency said.

The ratings reflect the combined company's operations in the niche, competitive pipe-fitting market with demand exposure to cyclical end markets, S&P said.

The company has good market positions and well-recognized brand name products, the agency said.

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