S&P gives Max US Bidco, loans B

S&P said it assigned B ratings to Max US Bidco Inc. and its planned seven-year $640 million first-lien term loan and $110 million five-year first-lien revolving credit facility that is not expected to be drawn at the close. The outlook is stable.

PAI Partners Sarl signed a definitive agreement to acquire JHW Alphia Topco Inc., the parent company of JHW Alphia Holdings Inc. As a result of the transaction, Max US Bidco will become the parent company of JHW Alphia. The deal is expected to close this month.

The acquisition purchase price of about $1.4 billion will be funded with a new seven-year $640 million loan and a $770 million common equity contribution. The agency estimates S&P Global Ratings-adjusted pro forma leverage for the 12 months ended June 30, is about 6.2x, compared to about 4.1x before the transaction.

S&P said it expects the company’s leverage will be sustained at under 7x over the next 12 months.

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