Recovery Report: Georgia Gulf Corp.'s Recovery Rating Profile Dec 11
- ID: 2034566
- December 2011
- Region: Georgia
- Standard & Poors
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.
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Research Type: Full Analysis