TEXT-S&P rates Jarden Corp convertible notes

Wed Sep 12, 2012 3:59pm EDT

Sept 12 - Standard & Poor's Ratings Services today assigned ratings to Rye,
N.Y.-based diversified consumer products provider Jarden Corp.'s proposed $450
million senior subordinated convertible notes due 2018, issued under Rule 144A
without registration rights. We rated the new subordinated notes 'B' (two
notches below our 'BB-' corporate credit rating on the company) with a recovery
rating of '6', indicating expectations of negligible (0% to 10%) recovery in the
event of a payment default. (For the recovery analysis, see Standard & Poor's
recovery report on Jarden, to be published on RatingsDirect following the
release of this report.)

Jarden has indicated that it will use up to $125 million of the net proceeds 
from the proposed note offering for the repurchase of its common stock, with 
the remaining proceeds for general corporate purposes. We expect net proceeds 
not used for share repurchases will be used for debt reduction over the next 
year. Jarden had about $3.4 billion of debt outstanding as of June 30, 2012.   

The 'BB-' corporate credit rating on Jarden reflects our assessment of its 
business risk profile as "fair" and financial risk profile as "aggressive". 
Key credit factors in our business risk assessment include Jarden's 
diversified business portfolio, well-recognized brand names, good market 
positions in numerous household product categories, and participation in 
several highly competitive businesses. We considered Jarden's leveraged 
financial profile, strong liquidity, and active acquisition strategy in our 
financial risk assessment. Credit measures will weaken somewhat following the 
issuance of the proposed notes, but will remain within the indicative ratio 
ranges for an aggressive financial risk profile, which include leverage, as 
measured by the ratio of adjusted debt to EBITDA, of 4x to 5x and funds from 
operations (FFO) to adjusted debt of 12% to 20%. For the 12 months ended June 
30, 2012, we estimate leverage will increase to about 4.8x, from 4.4x and FFO 
to adjusted debt will decline to about 13%, from 14.7%. 

Related Criteria And Research
     -- Summary: Jarden Corp., July 31, 2012
     -- Key Credit Factors: Criteria For Rating The Global Branded Nondurable 
Consumer Products Industry, April 28, 2011
     -- Criteria Guidelines For Recovery Ratings On Global Industrial Issuers' 
Speculative Grade Debt, Aug. 10, 2009
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008

Rating List
Jarden Corp.
  Corporate credit rating               BB-/Stable/--

New Rating
Jarden Corp.
 Subordinated 
  $450 mil. convertible notes due 2018  B
    Recovery rating                6
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