S&P rates Polymer loan

Standard & Poor's said it assigned its B+ corporate credit rating to Polymer Group Inc. and assigned its B+ rating and its recovery rating of 3 to both the company's proposed $50 million senior secured revolving credit facility due 2009 and $225 million senior secured first-lien term loan due 2010, based on preliminary terms and conditions.

In addition, S&P assigned its B- rating and a recovery rating of 5 to the proposed $200 million senior secured second-lien term loan due 2011.

The outlook is stable.

S&P said the ratings on Polymer Group reflect the company's below-average business position as a producer of nonwoven and oriented polyolefin products and its still very aggressive financial profile, including a highly leveraged balance sheet, following the company's emergence from Chapter 11 bankruptcy protection during early 2003.

These factors are partially offset by the company's solid market positions in niche markets, good geographic sales and manufacturing diversity, and favorable long-term growth prospects in certain end markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.