Kronos Acquisition Holdings Inc. is proposing to issue a US$235 million add-on to its 9% senior unsecured notes. The company will use the proceeds from the unsecured notes to repay a portion of the term loan outstanding. The debt repayment improves the recovery prospects on Kronos' first-lien term loan. As a result, we are raising our issue-level rating on Kronos' first-lien term loan to 'B' from 'B-' and revising our recovery rating on the debt to '2' from '3' given the improved recovery prospects following the anticipated debt repayment. We are also affirming our 'B-' long-term corporate credit rating on the company. At the same time, we are affirming our 'CCC' issue-level rating on Kronos' senior unsecured notes, including the
