Kronos Acquisition Holdings Inc. is proposing to refinance its US$1.085 billion term loan with a new US$235 million add-on to its existing US$390 million senior unsecured notes. The company will use the proceeds from the unsecured notes to repay a portion of the term loan outstanding issued in April 2016 to fund the Prestone Group acquisition. The debt repayment improves the recovery prospects on Kronos' first-lien term loan. We are affirming all our ratings on the company, including our 'B-' long-term corporate credit rating on Kronos. At the same time, we are revising our recovery rating on Kronos' first-lien term loan to '3' from '4' given the improved recovery prospects following the anticipated refinancing. The '6' recovery rating on the
