S&P revises IPL note recovery down

S&P said it revised the recovery rating for Intelligent Packaging Sub LP’s pro forma $585 million senior secured notes to 4 from 3 and affirmed the B issue-level rating. IPL is planning a $100 million add-on to its $485 million senior secured notes.

The company plans to use the proceeds to fund several bolt-on acquisitions, though the proposed offering adds to IPL’s already high debt load, S&P said.

“As such, it will need to generate S&P-adjusted EBITDA of approximately $95 million or higher to maintain debt leverage of 6.5x or below, which we believe could be challenging under the current macroeconomic environment and due to costs stemming from the integration of its acquisitions,” S&P said in a press release.

The agency also revised the outlook to negative from stable but affirmed the B issuer rating.

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