Standard & Poor's Ratings Services is updating its recovery ratings on U.S.-based chemical company Georgia Gulf Corp. as part of our ongoing rating surveillance process. Our simulated default scenario assumes a default in 2014 as a result of competitors expanding production capacity, along with increasing raw material and energy costs. We estimate gross enterprise value at about $735 million assuming a distressed emergence EBITDA of about $145 million and applying a 5.0x multiple. Georgia Gulf's capital structure consists of an (unrated) $300 million asset-based revolving (ABL) credit facility and $500 million in senior secured notes. The $41 million in 10.75% senior subordinated notes were repaid in full in October 2011 and the company expects to repay an aggregate $17 million...
Companies mentioned in this report are:
- Axiall Corp.
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