S&P rates Expro loans B

Standard & Poor’s said it assigned a B rating to the proposed $1.16 billion term loan B facility due 2021 and $250 million revolving credit facility due 2019 to be issued by new subsidiaries of Expro Holdings U.K. 3 Ltd.

The agency also said it assigned a recovery rating of 2 to the proposed term loan and revolver, indicating 70% to 90% expected default recovery.

The agency also said it affirmed the CCC+ rating on Expro’s $1.06 million mezzanine facility due in 2018. The recovery rating is unchanged at 5, indicating 10% to 30% expected default recovery.

The ratings are based on preliminary information and are subject to the successful issuance of these facilities and a satisfactory review of the final documentation, S&P said.

The proceeds will be used to repay in full the $1.1 billion term loan D, which Expro swapped into senior secured notes, the agency said. The proposed revolver will replace the existing super senior revolver.

Expro intends to complete this refinancing in advance of an initial public offering, which it estimates will take place in the second half of 2014.

As part of the refinancing transaction, the company has a $360 million committed delayed draw facility. Expro will use these funds and the IPO proceeds to repay the mezzanine facility, S&P said.

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