S&P rates Daeseke loans BB-

S&P said it assigned a B+ corporate credit rating to Daseke Inc.

The agency also said it assigned a BB- rating and 2 recovery rating to the company's proposed $250 million secured term loan and $100 million delayed draw term loan due 2024.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The outlook is stable.

The ratings reflect the company's participation in the highly fragmented, cyclical and capital-intensive trucking industry, S&P said.

Daseke provides open-deck specialty trucking services in the United States, Canada and Mexico, the agency said.

Over the next couple of years, S&P said it believes that Daseke's trucking volumes will increase gradually, supported by moderate U.S. economic growth.

The ratings also consider a belief that management's current acquisition strategy will allow the company to maintain credit measures that are commensurate with the rating, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.