...June 20, 2019 - Consolidated Container Co. LLC issued $250 million in new debt primarily to fund the acquisition of Tri State Distribution, a manufacturer of packaging for the pharmaceutical industry. - We expect leverage to increase to the high-5x area (including the full run rate of recent acquisitions) immediately following the transaction. We forecast it will fall to the mid-5x area in 2019 and around 5x in 2020. - We are therefore lowering our corporate credit rating on Consolidated Container Co. to 'B+'. We are assigning our 'B+' senior secured debt rating to the $250 million seven-year, incremental first-lien senior secured term loan. The recovery rating is '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. We are also lowering the issue-level rating on the company's existing first-lien term loan to 'B+' from '##-'. The recovery rating remains '3'. - The stable outlook reflects our view that the company will...
