Research Update: BW Holding Inc. Rated 'B-' On Acquisition By Genstar Capital; Outlook Stable; Debt Rated 'B-'

Connecticut-based label printing and packaging manufacturer BW Holding Inc. (also known as Brook + Whittle) is being acquired by Genstar Capital. The company plans to issue a $478 million first-lien term loan, including a $100 million delayed-draw term loan (DDTL), $50 million revolving line of credit, and $169 million second-lien term loan, including a $25 million DDTL to partly fund the transaction. S&P Global Ratings assigned its 'B-' issuer credit rating to BW Holding. At the same time, we assigned our 'B-' issue-level and '3' recovery ratings to the company's proposed $478 million first-lien term loan due in 2028 and $50 million revolver due in 2026. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%)

...- Connecticut-based label printing and packaging manufacturer BW Holding Inc. (also known as Brook + Whittle) is being acquired by Genstar Capital. The company plans to issue a $478 million first-lien term loan, including a $100 million delayed-draw term loan (DDTL), $50 million revolving line of credit, and $169 million second-lien term loan, including a $25 million DDTL to partly fund the transaction. - S&P Global Ratings assigned its 'B-' issuer credit rating to BW Holding. - At the same time, we assigned our 'B-' issue-level and '3' recovery ratings to the company's proposed $478 million first-lien term loan due in 2028 and $50 million revolver due in 2026. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default. - The stable outlook reflects our expectation that pro forma for the transaction, the company will continue to benefit from good profitability and positive free operating cash flow (FOCF),...

Research Update