S&P: PLZ Aeroscience loan B

Standard & Poor's said it assigned a preliminary B corporate credit rating to PLZ Aeroscience Corp.

The outlook is stable.

At the same time, S&P assigned a preliminary B issue rating to the company's proposed senior secured credit facilities, which include a $20 million U.S. revolver due 2018, a C$5 million Canadian revolver due 2018, a $163 million U.S. term loan due 2019, a $67.5 million U.S. delayed draw term loan due 2019 and a C$18.9 million Canadian term loan due 2019.

The preliminary recovery rating is 3.

PLZ's U.S. subsidiary, Plaze Inc., will issue the U.S. senior secured credit facilities, while its Canadian subsidiary, K-G Spray-Pak Inc., will issue the Canadian credit facilities.

S&P said the ratings on PLZ reflect its assessment of the company's narrow product focus within a fragmented and mature aerosol industry and lack of geographic diversity.

The ratings also reflect the agency's opinion that financial policy is very aggressive and debt burden is significant, its expectation for credit ratios to remain weak and its view that liquidity will remain adequate.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.