Research Update: Crown Holdings Inc. New Credit Facilities Rated 'BBB-'; 'BB+' Issuer Credit Rating Affirmed

Crown Holdings Inc. (Crown) has announced its intention to enter into a new $3.25 billion senior secured credit facility, including $1.65 billion in revolving credit facilities and a $1.6 million term loan A debt, using the proceeds to retire its existing secured credit facilities. Despite difficulties in some of its end markets, Crown continues to perform generally as expected post the Signode Industrial Group acquisition and restructuring initiatives. As a result of its stable performance and leverage neutral refinancing, we are affirming the 'BB+' issuer credit rating on Crown. We have also assigned Crown's proposed $3.25 billion senior secured credit facility a 'BBB-' issue rating based on a '2' recovery rating, which reflects our expectation of a substantial recovery (70%-90%;

...- Crown Holdings Inc. (Crown) has announced its intention to enter into a new $3.25 billion senior secured credit facility, including $1.65 billion in revolving credit facilities and a $1.6 million term loan A debt, using the proceeds to retire its existing secured credit facilities. - Despite difficulties in some of its end markets, Crown continues to perform generally as expected post the Signode Industrial Group acquisition and restructuring initiatives. - As a result of its stable performance and leverage neutral refinancing, we are affirming the '##+' issuer credit rating on Crown. We have also assigned Crown's proposed $3.25 billion senior secured credit facility a '###-' issue rating based on a '2' recovery rating, which reflects our expectation of a substantial recovery (70%-90%; rounded estimate: 80%) in a default scenario. The recovery expectations for the facility benefit from a comprehensive guarantee and collateral package, including guarantees and collateral pledges from certain...

Research Update