Research Update: W/S Packaging Holdings CCR Raised To 'B' From 'CCC' On Improved Liquidity, Rating Off Watch Positive, Outlook Stable

U.S.-based label and other packaging products maker W/S Packaging Holdings Inc. is issuing $250 million of senior secured notes to refinance the equity contribution from its financial sponsor Platinum Equity partners, which it used to finance its buyout. We now believe that the company's headroom under its financial covenants and its liquidity position are sufficient for a higher rating. Therefore, we are raising our corporate credit rating on W/S Packaging Holdings Inc. to 'B' from 'CCC' and are removing the rating from CreditWatch, where we placed it with positive implications on Feb. 16, 2018. At the same time, we are assigning our 'B' issue-level rating and '4' recovery rating to the proposed notes. The stable outlook reflects our expectation that

...+ U.S.-based label and other packaging products maker W/S Packaging Holdings Inc. is issuing $250 million of senior secured notes to refinance the equity contribution from its financial sponsor Platinum Equity partners, which it used to finance its buyout. + We now believe that the company's headroom under its financial covenants and its liquidity position are sufficient for a higher rating. + Therefore, we are raising our corporate credit rating on W/S Packaging Holdings Inc. to 'B' from '###' and are removing the rating from CreditWatch, where we placed it with positive implications on Feb. 16, 2018. + At the same time, we are assigning our 'B' issue-level rating and '4' recovery rating to the proposed notes. + The stable outlook reflects our expectation that W/S will be able to increase its profitability by improving its customer mix and operational efficiencies and reducing its debt leverage to more manageable levels....

Research Update