S&P rates Justrite loan B

S&P said it assigned a B issuer credit rating to JMC Acquisition Corp., and its subsidiary, Safety Products/JHC Acquisition Corp.

The outlook is stable.

The agency also said it assigned a B rating with a 3 recovery rating to the senior secured first-lien credit facilities, which comprise a $35 million senior secured first-lien revolving credit facility, $410 million senior secured first-lien term loan facility and $50 million senior secured first-lien delayed-draw term loan facility.

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

The company, which does business as Justrite Safety Group, plans to refinance its existing capital structure with a $495 million first-lien, senior secured credit facility and $127.5 second-lien term loan, S&P said.

As a result, the agency said it expects a very high adjusted debt-to-EBITDA in the mid-7x range this year, improving to the mid-6x range in 2020 due to both organic and inorganic growth.

The stable outlook reflects a view that the company will successfully integrate its recent acquisition, increase its EBITDA margins and decrease leverage to mid-6x range, S&P said.

The agency said it believes the company will continue to pursue acquisitions to improve its business profile, but does not expect these to materially increase leverage or alter the view of its business position.

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