S&P revises Culligan view to negative, rates loans B

S&P said it affirmed its B issuer credit rating on AI Aqua Sarl (Culligan) and revised the outlook to negative from stable.

At the same time, S&P assigned a B issuer credit rating to Osmosis Holdings LP, the new parent and financial reporting entity upon transaction close. The outlook is negative.

AI Aqua is undergoing a leveraged buyout transaction, whereby BDT Capital Partners will acquire a controlling stake in the company through a newly formed parent, Osmosis Holdings.

S&P said it will withdraw the existing issuer credit and issue-level ratings on AI Aqua and its borrowing subsidiaries at the close of the transaction.

S&P also assigned a B issue-level rating to the company's proposed first-lien term loan and revolving credit facility with a 3 recovery rating, indicating an expectation for meaningful (55% rounded estimate) recovery in the event of a payment default.

“The negative outlook reflects the higher debt leverage (including the preferred equity) for the transaction coupled with the company's ongoing acquisition growth strategy, which could delay deleveraging over the next year if cash flow generation is weaker than expected and ongoing transaction and other one-time charges continue to negatively affect pro forma EBITDA,” S&P said in a news release.

© 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.