...- Concord, Ont.-based Kronos Acquisition Holdings Inc. is proposing to issue US$1.9 billion of debt to refinance its existing capital structure and pay US$484 million dividends to its financial sponsors, affiliates of Centerbridge Partners L.P., a private equity firm, and minority investors. Pro forma the transaction, the debt to EBITDA on an S&P Global Ratings' adjusted basis for the last 12 months (LTM) to Oct. 03, 2020 (pro forma for the sale of the contract manufacturing business) is about 7x and we expect the company will maintain a debt-to-EBITDA ratio in the 6.5x-7.0x area over the next 12 months, a leverage level that is commensurate with the rating. - Therefore, on Dec. 17, 2020, S&P Global Ratings affirmed its 'B-' issuer credit rating on Kronos. - At the same time, we assigned our 'B-' issue-level rating and '4' recovery rating to the company's proposed senior secured US$900 million term loan and US$475 million of senior secured notes, both of which rank pari passu, and our '###'...
