TEXT-S&P says Pro Mach credit facility rating remains unchanged

Wed Oct 3, 2012 3:12pm EDT

Oct 3 - Standard & Poor's Ratings Services today said its issue-level rating
on Loveland, Ohio-based integrated packaging solutions company Pro Mach Inc.'s
credit facility ($50 million revolver due 2016 and $245 million term loan due
2017) is unchanged. The company is proposing to add $40 million to its existing
$255 million credit facility, for an aggregate of $295 million. The issue-level
rating on the credit facility is 'B+' and the recovery rating is '3', indicating
our expectations for a substantial (50% to 70%) recovery for lenders in the
event of a payment default. Pro Mach provides integrated packaging solutions,
primarily serving the food, beverage, household goods, and pharmaceutical
end-markets. The company will use the proceeds to fund several acquisitions. 

The 'B+' corporate credit rating and stable outlook on Pro Mach remain 
unaffected. We expect credit measures to remain somewhat in line with our 
expectations for the rating. We believe that over the next 12 months the 
company will maintain credit protection measures in line with our indicative 
ratios for an "aggressive" financial risk profile, including the ratio of 
total debt to EBITDA of about 4.0x to 5.0x and funds from operations to debt 
of 10% to 15% over the business cycle. Our "weak" business risk profile 
assessment incorporates our view of its participation in a highly fragmented 
and competitive packaging industry, and its relatively narrow scope of 
operations.

RELATED CRITERIA AND RESEARCH
     -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

RATINGS LIST

Pro Mach Inc. 
 Corporate Credit Rating         B+/Stable/--
 $50 mil revolver due 2016       B+
   Recovery Rating               3
 $245 mil term loan due 2017     B+
   Recovery Rating               3
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