S&P gives B to EM Midco 2/Element loan

S&P said it assigned a B long-term issuer credit rating to EM Midco 2 Ltd., a new entity formed in the acquisition of Element Materials Technology Ltd. from private equity company Bridgepoint. S&P also assigned a B rating to Element’s financing subsidiaries Element Materials Technology Group US Holdings and EM Bidco Ltd.

The acquisition was funded with $2.975 billion of new debt (including $800 million of payment-in-kind notes from the holdco), alongside $3.975 billion of equity (including rolled equity) and $80 million of cash on balance sheet.

S&P said assigned its B issue rating and 3 recovery rating to its $1.825 billion term loan B split across a U.S. dollar tranche (including $975 million term loan and $450 million delayed-draw term loan) and euro tranche (€374 million).

S&P also raised the issuer credit ratings on Element Materials Technology Ltd. and its financing subsidiaries Greenrock Midco Ltd. and Greenrock Finance Inc. to B from B- and removed the ratings from CreditWatch where they were placed on Jan. 7, 2022. S&P has withdrawn its issue ratings on the senior secured debt as it has now been fully repaid.

The outlook is stable.

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