S&P trims Arclin first-lien loan to B

S&P said it lowered its issue-level rating on LSF 10 Cedar Investments Ltd. (Arclin)'s $560 million first-lien senior secured term loan ($558 million outstanding) to B from B+.

The lowering of the issue-level rating follows the company's proposed $40 million incremental add-on to the first-lien term loan. This add-on is in addition to the company's previously announced $40 million add-on to the first-lien term loan to repay a portion of second-lien debt.

S&P said it revised the recovery rating on the facility to 3 from 2, indicating an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

The CCC+ issue-level rating on the $125 million second-lien senior secured term loan ($85 million outstanding) is unchanged. The recovery rating remains 6, indicating an expectation for negligible (0%-10%; rounded estimate: 0%) recovery to creditors in the event of a payment default.

The borrower of the first-lien and second-lien term loans is New Arclin U.S. Holding Corp.

“Our B corporate credit rating and stable rating outlook on LSF 10 Cedar Investments Ltd. (Arclin) are unchanged,” S&P said in a news release.

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