WKI Holding Co. Inc. Acquisition Financing Rated; Parent Co. Assigned 'B' CCR; Outlook Stable

U.S.–based WKI Holding Co. Inc. (WKI) is being acquired by a special-purpose acquisition company (SPAC) owned by the private-equity arm of GP Investments Ltd., for $566 million. Public shareholders will own the majority of the company and GP Investments will own about 30%. We are affirming our existing 'B' corporate credit rating on WKI (the borrower of the proposed capital structure) and assigning a 'B' corporate credit rating to the new parent entity, World Kitchen Group Inc. (World Kitchen). We are assigning a 'B' issue-level rating and '3' recovery rating to the proposed $275 million senior secured term loan B maturing 2023. The stable outlook reflects our expectation of revenue growth, positive free operating cash flow, good covenant cushion, and

...+ U.S.¡based WKI Holding Co. Inc. (WKI) is being acquired by a special-purpose acquisition company (SPAC) owned by the private-equity arm of GP Investments Ltd., for $566 million. Public shareholders will own the majority of the company and GP Investments will own about 30%. + We are affirming our existing 'B' corporate credit rating on WKI (the borrower of the proposed capital structure) and assigning a 'B' corporate credit rating to the new parent entity, World Kitchen Group Inc. (World Kitchen). + We are assigning a 'B' issue-level rating and '3' recovery rating to the proposed $275 million senior secured term loan B maturing 2023. + The stable outlook reflects our expectation of revenue growth, positive free operating cash flow, good covenant cushion, and leverage near 4x. SAN FRANCISCO (S&P Global Ratings) June 3, 2016--S&P Global Ratings today affirmed its ratings, including the 'B' corporate credit rating on Rosemount, Ill.-based WKI Holding Co. Inc. Additionally, we assigned a 'B'...

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