Research Update: Primo Water Corp. 'B+' Issuer Credit Rating Placed On CreditWatch Positive Following Merger Announcement

On June 17, 2024, Tampa, Fla.-based Primo Water Corp. and Triton Water Holdings Inc. (d/b/a BlueTriton) announced that they entered into a definitive agreement to merge through an all-stock transaction, which will create a pure-play hydration company. The company expects to close the deal by the first half of 2025, subject to shareholder and regulatory approvals. Based on its current debt structure, we expect Primo's pro forma S&P Global Ratings-adjusted leverage will be about 4.5x We placed our 'B+' issuer credit rating on Primo Water Corp. on CreditWatch with positive implications. At the same time, we placed our 'B+' issue-level rating on the company's senior unsecured debt on CreditWatch with developing implications because we are uncertain about its post-merger guarantee

...- On June 17, 2024, Tampa, Fla.-based Primo Water Corp. and Triton Water Holdings Inc. (d/b/a BlueTriton) announced that they entered into a definitive agreement to merge through an all-stock transaction, which will create a pure-play hydration company. The company expects to close the deal by the first half of 2025, subject to shareholder and regulatory approvals. - Based on its current debt structure, we expect Primo's pro forma S&P Global Ratings-adjusted leverage will be about 4.5x - We placed our 'B+' issuer credit rating on Primo Water Corp. on CreditWatch with positive implications. At the same time, we placed our 'B+' issue-level rating on the company's senior unsecured debt on CreditWatch with developing implications because we are uncertain about its post-merger guarantee structure. - The CreditWatch positive placement reflects that we will likely raise our issuer credit rating on Primo Water by one notch following its merger with BlueTriton....

Research Update