Research Update: BWAY Holding Co. Rating Raised To 'B' On Acquisition Of ICSH Parent; Outlook Stable

BWAY Holding Co. has agreed to acquire ICSH Parent (d/b/a Industrial Container Services, ICS) in a transaction valued at over $1.025 billion. BWAY plans to issue a $400 million incremental term loan, an add-on to its $1.5 billion term loan, and €475 million in senior secured notes to fund the acquisition and to redeem $100 million of series A preferred stock. We are raising our corporate credit rating on BWAY to 'B' from 'B-' to reflect BWAY's improved overall scale, product breadth, and share of the industrial rigid packaging market as a result of the proposed acquisition. The outlook is stable. At the same time, we are raising our issue-level rating on the company's pro forma term loan and senior

...+ BWAY Holding Co. has agreed to acquire ICSH Parent (d/b/a Industrial Container Services, ICS) in a transaction valued at over $1.025 billion. + BWAY plans to issue a $400 million incremental term loan, an add-on to its $1.5 billion term loan, and 475 million in senior secured notes to fund the acquisition and to redeem $100 million of series A preferred stock. + We are raising our corporate credit rating on BWAY to 'B' from 'B-' to reflect BWAY's improved overall scale, product breadth, and share of the industrial rigid packaging market as a result of the proposed acquisition. The outlook is stable. + At the same time, we are raising our issue-level rating on the company's pro forma term loan and senior secured notes to 'B' from 'B-' and assigning our 'B' issue-level rating on the company's euro-denominated senior secured notes. We are also raising our issue-level rating on the company's senior unsecured notes to '###+' from '###'. + The stable outlook reflects our expectation that sales...

Research Update