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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

  • Published: March 2011
  • Standard & Poors

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

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Pretium Packaging, LLC

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