S&P cuts Cyanco first-lien debt

S&P said it lowered its issue-level and recovery ratings on Cyanco Intermediate 2 Corp.'s first-lien credit facilities and affirmed the ratings on the second-lien debt.

The agency lowered the issue-level rating on the first-lien secured debt to B from B+ after revising the recovery rating to 3 from 2. The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of default.

The issue-level rating on second-lien debt remains CCC+ and the recovery rating remains 6, indicating an expectation of negligible (0%-10%; rounded estimate: 5%) recovery.

S&P said the action reflects a view of Cyanco's plan to increase its first-lien term loan by $20 million to $400 million and decrease the second-lien term loan by $20 million to $80 million.

“The re-tranched deal is leverage-neutral compared with the original proposed transaction; therefore, the B corporate credit rating is unaffected,” the agency said in a news release.

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