Research Update: Pixelle Specialty Solutions LLC 'B' Rating Affirmed On Leveraged Buyout; Issue-Level Rating Assigned

Spring Grove, Pa.-based Pixelle Specialty Solutions LLC, a producer of specialty papers for label technology, food packaging papers, and other commercial and industrial end use, entered into a definitive agreement to be purchased by a company controlled by H.I.G. Capital The acquisition will be partially funded with a $567 million senior secured credit facility, comprising a $60 million senior secured revolving credit facility (undrawn at close) and a $507 million senior secured term loan, both issued by Spectrum Group Buyer Inc. We affirmed our 'B' issuer credit rating on Pixelle. At the same time, we assigned our 'B' issue-level rating to the company's proposed senior secured credit facility, with a '3' recovery rating. The outlook is stable, reflecting leverage of

...- Spring Grove, Pa.-based Pixelle Specialty Solutions LLC, a producer of specialty papers for label technology, food packaging papers, and other commercial and industrial end use, entered into a definitive agreement to be purchased by a company controlled by H.I.G. Capital - The acquisition will be partially funded with a $567 million senior secured credit facility, comprising a $60 million senior secured revolving credit facility (undrawn at close) and a $507 million senior secured term loan, both issued by Spectrum Group Buyer Inc. - We affirmed our 'B' issuer credit rating on Pixelle. - At the same time, we assigned our 'B' issue-level rating to the company's proposed senior secured credit facility, with a '3' recovery rating. - The outlook is stable, reflecting leverage of 4.6x pro forma for the transaction, which we expect to fall closer to 4x by the end of 2022....

Research Update