Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Sotera Health Holdings LLC > News item |
S&P rates Sotera Health loan B
S&P said it assigned its B issue-level rating and 3 recovery rating on Sotera Health Holdings LLC's proposed $320 million first-lien term loan B and $320 million debt-funded dividend. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.
The B issue-level rating and 3 recovery rating on the existing first-lien term loan remain unchanged.
S&P said the CCC+ issue-level rating and 6 recovery rating on Sotera's outstanding senior unsecured debt and paid-in-kind (PIK) toggle notes also remain unchanged. The 6 recovery rating continues to indicate an expectation for negligible (0%-10%; rounded estimate: 0%) recovery of principal in the event of a payment default.
“Our issuer credit rating on Sotera Health reflects the company's leading global position in the critical and government-mandated contract sterilization services business (primarily for medical devices), its long-term contracts and low customer churn, its diverse customer base, the significant regulatory barriers to entry in its industry, and its very strong profitability and free cash flow generation,” S&P said in a news release.
“The rating also reflects the company's relatively high capital intensity and the environmental risks arising from its processes and materials. Our rating on Sotera is constrained by the company's financial-sponsor ownership and high debt leverage,” S&P added.
© 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.