S&P places Cyanco on positive watch

S&P said it placed its B ratings for Cyanco Intermediate 2 Corp. and its loans on CreditWatch with positive implications. The placement follows the announcement that Orica Corp. agreed to buy Cyanco’s parent Cyanco Intermediate 4 Corp. for $640 million on a cash-free, debt-free basis.

“We expect the transaction will be credit positive for Cyanco given Orica's stronger credit ratings, larger scale, and lower debt leverage. Our CreditWatch listing indicates that we could raise our issuer credit rating on Cyanco by multiple notches upon the close of the transaction. As per public statements by Orica, it expects to close the acquisition by the end of 2024, subject to the expiration of certain regulatory waiting periods and other customary closing conditions,” S&P said in a press release.

S&P said it aims to resolve the positive watch once it is assured the deal will close as expected.

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