S&P gives Array Midco, loan B-

S&P said it gave B- ratings to Array Midco Corp. and its $27 million first-lien term loan A. The agency also assigned a 3 recovery rating to the loan. The company’s debt structure includes the term loan A, a $147 million term loan B and $35 million asset-based lending facility.

Concurrently, S&P said it withdrew Array Marketing Canada Inc.’s ratings.

“We expect Array will maintain a debt-to-EBITDA ratio in the low-mid 6x area through 2022. Array has reduced its total debt by approximately $180 million following its recapitalization. The company's total debt (S&P Global Ratings adjusted) is about $220 million, consisting of about $174 million of term loans (A and B), about $15 million outstanding on the new ABL credit facility, and about $30 million of operating lease obligations,” S&P said in a press release.

The outlook is negative reflecting the company’s vulnerability to shifts in its macro environment, given the company's EBITDA base, which could lead to higher-than-expected volatility in EBITDA and pressure credit measures, S&P said.

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