DS Parent Inc.'s Proposed Senior Secured Credit Facilities Rated 'B' (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) Nov. 28, 2023--S&P Global Ratings today assigned its 'B' issue-level rating and '3' recovery rating to DS Parent Inc.'s proposed senior secured credit facilities, which comprise a $450 million term loan and a $100 million revolving credit facility. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default. The company plans to use the proceeds from the term loan to refinance its existing debt and fund its acquisition of Extrusion Technology Group (ETG). ETG is a supplier of extrusion equipment and services. The company's equipment is used to extrude resins into various shapes, sizes, and profiles used in infrastructure projects, water management, packaging and

...Simulated default assumptions - Year of default: 2026 - EBITDA at emergence: $66 million - EBITDA multiple: 5x - Jurisdiction: U.S. Simplified waterfall - Gross enterprise value: $330 million - Net enterprise value (after 5% administrative costs): $314 million - Valuation split (obligors/nonobligors): 45%/55% - Total value available to secured creditors: $314 million - Secured senior term loan and revolver: $545 million - --Recovery expectations: 50%-70% (rounded estimate: 55%) Note: Debt amounts include six months of accrued interest that we assume will be owed at default. We generally assume usage of 85% for cash flow revolving facilities at default....

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