Research Update: Kronos Acquisition Holdings Inc. Outlook Revised To Negative On Increased Leverage Measures; US$170M Debt Rated - S&P Global Ratings’ Credit Research

Research Update: Kronos Acquisition Holdings Inc. Outlook Revised To Negative On Increased Leverage Measures; US$170M Debt Rated

Research Update: Kronos Acquisition Holdings Inc. Outlook Revised To Negative On Increased Leverage Measures; US$170M Debt Rated - S&P Global Ratings’ Credit Research
Research Update: Kronos Acquisition Holdings Inc. Outlook Revised To Negative On Increased Leverage Measures; US$170M Debt Rated
Published Dec 21, 2021
8 pages (3295 words) — Published Dec 21, 2021
Price US$ 225.00  |  Buy this Report Now

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Abstract:

Concord, Ont.-based Kronos Acquisition Holdings Inc. is proposing to issue US$170 million in debt mainly for working capital and to some extent for capital expenditure (capex) requirements for its Lake Charles facility in Louisiana. The company's 2021 EBITDA is also weaker than we expected primarily due to continued high inflation ahead of price increases. Pro forma the transaction, debt to EBITDA (S&P Global Ratings' adjusted) for 2021 is about 7.5x and we expect it will increase to 8.0x-8.5x over the next 12 months. Therefore, on Dec. 21, 2021, S&P Global Ratings revised the outlook on Kronos to negative from stable. At the same time, S&P Global Ratings affirmed all of its ratings on the company, including its 'B-' issuer credit

  
Brief Excerpt:

...- Concord, Ont.-based Kronos Acquisition Holdings Inc. is proposing to issue US$170 million in debt mainly for working capital and to some extent for capital expenditure (capex) requirements for its Lake Charles facility in Louisiana. The company's 2021 EBITDA is also weaker than we expected primarily due to continued high inflation ahead of price increases. - Pro forma the transaction, debt to EBITDA (S&P Global Ratings' adjusted) for 2021 is about 7.5x and we expect it will increase to 8.0x-8.5x over the next 12 months. - Therefore, on Dec. 21, 2021, S&P Global Ratings revised the outlook on Kronos to negative from stable. At the same time, S&P Global Ratings affirmed all of its ratings on the company, including its 'B-' issuer credit rating on Kronos. - We also assigned our 'B-' issue-level rating and '4' recovery rating to the company's proposed senior secured US$170 million term loan facility, which ranks pari passu with the existing term loan B. - The negative outlook reflects the...

  
Report Type:

Research Update

Issuer
Kronos Acquisition Holdings Inc.
GICS
Personal Products (30302010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Kronos Acquisition Holdings Inc. Outlook Revised To Negative On Increased Leverage Measures; US$170M Debt Rated" Dec 21, 2021. Alacra Store. May 02, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Kronos-Acquisition-Holdings-Inc-Outlook-Revised-To-Negative-On-Increased-Leverage-Measures-US-170M-Debt-Rated-2774251>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Kronos Acquisition Holdings Inc. Outlook Revised To Negative On Increased Leverage Measures; US$170M Debt Rated Dec 21, 2021. New York, NY: Alacra Store. Retrieved May 02, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Kronos-Acquisition-Holdings-Inc-Outlook-Revised-To-Negative-On-Increased-Leverage-Measures-US-170M-Debt-Rated-2774251>
  
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