S&P affirms Cyanco first-lien facilities

S&P said it affirmed its B issue-level rating on Cyanco Intermediate 2 Corp.'s first-lien credit facilities following the company's recent announcement of an incremental $75 million first-lien term loan.

The 3 recovery rating remains, indicating an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

The company intends to use the proceeds from the incremental term loan to fully repay its second-lien term loan.

S&P said it expects to withdraw our ratings on the second-lien term loan when it is fully repaid.

“We view the proposed deal as leverage neutral, therefore all of our other ratings on Cyanco remain unchanged. We expect the company to benefit from modest interest cost savings following this transaction,” the agency said in a news release.

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