S&P rates SupplyOne, loan B

S&P said it assigned B ratings to SupplyOne Holdings Co. Inc. and its $770 million term loan due 2031 to be borrowed by its subsidiary SupplyOne Inc. The recovery rating on the loan is 3. The outlook is stable. The company also plans to borrow a $120 asset-based lending revolver, which will be unrated, and undrawn at close.

“With roughly $1.25 billion in 2023 revenue, Supply One primarily serves U.S.-based small to midsize businesses (SMBs) with custom corrugated converting capabilities as well as short run, value-added distribution services across several end markets including food and beverage, consumer products, industrial, and medical and pharmaceutical,” S&P said in a press release.

The agency said it estimates the company’s 2024 S&P Global Ratings-adjusted EBITDA above $170 million.

“The stable rating outlook reflects our expectation that SupplyOne will generate low- to mid-single-digit percentage organic revenue growth in 2024, with modest volume growth as the company moves past inventory destocking that has affected the broader packaging industry,” S&P said.

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