S&P: HERC loan BB, notes B+

S&P said it assigned a B+ corporate credit rating to HERC Holdings Inc. and its core operating subsidiary, HERC Rentals Inc.

The agency also said it assigned a BB rating and 1 recovery rating to the company's proposed $1.75 billion ABL facility due 2021.

The 1 recovery rating indicates 90% to 100% expected default recovery.

S&P also said it assigned a B+ rating and 3 recovery rating on the company's proposed aggregate $1.1 billion senior secured second-lien notes due 2022 and 2024.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The outlook is stable.

The ratings reflect an expectation that the company will maintain adjusted debt-to-EBITDA of less than 4x, providing it with some cushion to absorb a potential economic downturn given its good position in the cyclical, competitive and highly fragmented U.S. equipment rental industry, the agency said.

The company is expected to maintain its market position as the third largest North American equipment-rental provider in this highly capital intensive sector, S&P 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.