S&P rates WP CPP loan CCC+

S&P said it assigned its CCC+ rating to WP CPP Holdings LLC’s $100 million incremental first-lien term loan due in April 2025. The recovery rating is 4, indicating expectations of average (30%-50%; rounded estimate: 45%) recovery in a default.

WP CPP plans to use the proceeds to bolster liquidity. Pro forma for the transaction, the company has about $173 million cash on hand and about $90 million added revolver and accounts receivable securitization facility availability as of June 30.

“The transaction will slightly weaken credit metrics in 2020 from our previous expectations, but it improves liquidity. This is more of a concern with the weakness in the commercial aerospace market caused by the coronavirus pandemic,” S&P said in a press release.

The company’s other S&P ratings are not affected, the agency said.

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