S&P rates Maravai Topco loans B-, CCC

S&P said it assigned its B- issuer credit rating to Maravai Topco Holdings LLC. The outlook is stable.

At the same time, S&P assigned a B- issue-level rating and 3 recovery rating to the company's first-lien credit facility, which consists of a $50 million revolving credit facility and $250 million first-lien term loan. The 3 recovery rating indicates expectations for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a default.

In addition, S&P assigned a CCC issue-level rating and 6 recovery rating to the company's second-lien term loan. The 6 recovery rating indicates expectations for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a default.

“The ratings on Maravai reflect the company's very limited scale, short operating history, and narrow focus in a few highly competitive and fragmented niches within the life science industry,” S&P said in a news release.

“The ratings also reflect pro forma leverage in the mid-6x range, and our view that sponsor ownership will shape aggressive financial policies that limit deleveraging over time.”

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