S&P rates Imola Acquisition loans BB-

S&P said it assigned its BB- issuer credit rating to Imola Acquisition Corp. The outlook is stable.

At the same time, S&P assigned a BB- issue-level rating and 4 recovery rating to the secured debt. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 45%) recovery in the event of a default.

Imola, through ultimate borrower Ingram Micro Inc. (when the transaction closes), is proposing to issue a $2 billion term loan B and $2 billion of eight-year secured notes as part of its funding plan for the leveraged buyout of Ingram Micro, valued at approximately $7.2 billion.

“We estimate Ingram will have pro forma adjusted leverage in the 4.5x area at the close of the transaction under this structure and envision that future financial policies will support this level of leverage or lower despite its financial sponsor ownership,” S&P said in a news release.

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