...January 25, 2021 NEW YORK (S&P Global Ratings) Jan. 25, 2021--S&P Global Ratings today said that it has assigned its 'B+' issue-level rating and '3' recovery rating to Altium Packaging LLC's proposed $1.050 billion first-lien term loan. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. The company is issuing the $1.050 billion term loan to fully redeem its existing $830 million term loans, fund a $200 million shareholder distribution, and pay associated financing costs, with any remaining proceeds retained as balance sheet cash. We estimate that pro form debt leverage will be approximately 6.5x (based on trailing Sept. 30, 2020 S&P Global Ratings' adjusted figures). While the transaction will weaken debt leverage by roughly 1.25x, the company's credit metrics remain well within the range appropriate for the current rating (7x or above downgrade threshold). The company performed well in 2020, as tailwinds...
