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Recovery Report: Pretium Packaging LLC's Recovery Rating Profile Mar 11 Product Image

Recovery Report: Pretium Packaging LLC's Recovery Rating Profile Mar 11

  • ID: 1823399
  • March 2011
  • Standard & Poors

FEATURED COMPANIES

  • Pretium Packaging, LLC
  • MORE

Abstract
We are assigning recovery and issue-level ratings to Pretium Packaging LLC (Pretium)'s proposed five-year $150 million senior secured notes due 2016, proceeds of which will be used to refinance about $110 million in existing debt, to fund a $31 million dividend, and to pay transaction related fees and expenses with the remainder. Standard & Poor's simulated default scenario entails a 2015 payment default assuming that the economy relapses into a recession while competitive pressures cause margin erosion and the loss of market share. We estimate a gross recovery value of $116 million based on a distressed emergence EBITDA of $23 million and assuming a 5.0x EBITDA multiple. The pro forma debt structure consists of a four-year $25 million asset-based (ABL)...

Companies mentioned in this report are: Pretium Packaging, LLC

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Full Analysis

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Pretium Packaging, LLC

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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