...March 7, 2024 This report does not constitute a rating action. ENGLEWOOD (S&P Global Ratings) March 7, 2024--S&P Global Ratings today said that Merlin Acquisition Corp.'s (B-/Stable/--; Bettcher Industries) planned acquisitions will increase its leverage beyond our previous expectation in 2024. Nevertheless, we believe the company's credit metrics will not weaken materially following its recent $50 million and proposed $85 million incremental fungible debt issuances. Therefore, all of our ratings on Bettcher, including our 'B-' issuer credit rating and 'B-' issue-level rating on its first-lien term loan, are unchanged. The company will use the proceeds from the proposed $85 million incremental debt issuance, along with $118 million of combined sponsor and management common equity, to fund its acquisition of a U.S.-based manufacturer of breading, batter, and frying equipment . The proposed transaction marks Bettcher's fifth acquisition since its purchase by KKR & Co. in 2021 and follows...
