S&P rates DPx notes CCC+

Standard & Poor’s said it assigned a CCC+ senior unsecured issue-level rating and 6 recovery rating to JLL/Delta Dutch Pledgeco BV’s proposed $550 million senior unsecured holding company notes due 2020.

The ratings and outlook on the operating company, DPx Holdings BV, are unchanged.

The proceeds from the issuance will be used mainly to fund a dividend to its sponsor owners, S&P said.

The transaction increases adjusted leverage to the mid-7x range from about 5.7x projected for 2015, the agency said.

The 6 recovery rating indicates 0 to 10% expected default recovery.

The agency said it expects that DPx will continue to remain aggressive over the near term in pursuing moderate-sized tuck-in acquisitions, which will further strengthen and broaden its drug manufacturing and development services.

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