Merlin Acquisition Corp. Assigned 'B-' Issuer Credit Rating, Outlook Stable; First-Lien Debt Rated 'B-'

KKR&Co. is acquiring Merlin Acquisition Corp., the parent of specialty protein processing solutions manufacturer Bettcher Industries Inc. The proposed debt financing will consist of a $60 million revolving credit facility (undrawn at close) due 2026, a $300 million first-lien term loan due 2028, and a $85 million second-lien term loan due 2029. We assigned our 'B-' issuer credit rating to Merlin Acquisition Corp. We also assigned our 'B-' issue-level rating and '3' recovery rating to the company's proposed first-lien debt as well as our 'CCC' issue-level rating and '6' recovery rating on the proposed second-lien term loan. The stable outlook reflects our view that the company will continue demonstrating solid operating performance and generating positive free operating cash

...- KKR & Co. is acquiring Merlin Acquisition Corp., the parent of specialty protein processing solutions manufacturer Bettcher Industries Inc. - The proposed debt financing will consist of a $60 million revolving credit facility (undrawn at close) due 2026, a $300 million first-lien term loan due 2028, and a $85 million second-lien term loan due 2029. - We assigned our 'B-' issuer credit rating to Merlin Acquisition Corp. - We also assigned our 'B-' issue-level rating and '3' recovery rating to the company's proposed first-lien debt as well as our '###' issue-level rating and '6' recovery rating on the proposed second-lien term loan. - The stable outlook reflects our view that the company will continue demonstrating solid operating performance and generating positive free operating cash flow (FOCF), enabling it to reduce its S&P Global Ratings'-adjusted debt to EBITDA toward the low-7x area during the next 12 months. CENTENNIAL (S&P Global Ratings) Dec. 1, 2021--S&P Global Ratings today...

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