S&P rates Sharp Services add-on B-

S&P said it assigned B- issue-level and 3 recovery ratings to Sharp Services LLC’s incremental $211.4 million first-lien term loan. The 3 recovery rating indicates meaningful recovery (50%-70%; rounded estimate: 60%) in default.

The company is also boosting its revolver by $40 million to $130 million, to be undrawn at close.

Concurrently, S&P affirmed the B- ratings on Sharp and its outstanding first-lien debt.

Sharp is exercising its call option to acquire the remaining 75% stake in Berkshire Sterile Manufacturing. The company will fund the $287 million acquisition with the incremental term loan and an $80.8 million equity investment from Clayton Dubilier & Rice and BSM's existing shareholders.

The outlook is stable.

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