(The following statement was released by the rating agency)
Oct 5 - Standard & Poor's Ratings Services said today that its 'B' issue-level and '5' recovery rating on The Woodlands, Texas-based chemicals and plastics distributor Nexeo Solutions LLC's term loan remains unchanged following the company's proposal to increase the term loan to $525 million from $325 million. All of our other ratings on Nexeo, including the 'B+' corporate credit rating, also remain unchanged. The outlook is stable.
Nexeo will use the proceeds to repay outstanding borrowings under its asset-based revolving (ABL) credit facility and for general corporate purposes.
The '5' recovery rating on Nexeo's term loan indicates our expectation of a modest (10% to 30%) recovery in the event of a payment default. For the complete recovery analysis, see Standard & Poor's recovery report on Nexeo to be published later on RatingsDirect.
For the latest complete corporate credit rating rationale, see Standard & Poor's summary analysis, "Nexeo Solutions LLC," published Sept. 13, 2012.
Ratings List Ratings Unchanged Nexeo Solutions LLC
Corporate credit rating B+/Stable/--
$525mil. Sr Secd term loan B
due 2018 B Recovery rating 5 Subordinated B- Recovery rating 6
Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at
. All ratings affected by this rating action can be found on Standard & Poor's public Web site at . Use the Ratings search box located in the left column. (New York Ratings Team)