S&P affirms Quality Distribution loans

S&P said it affirmed its B- issue-level rating on Quality Distribution Inc.'s $525 million first-lien term loan, including the proposed $60 million incremental term loan due 2022.

The 3 recovery rating remains, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default.

Additionally, the agency affirmed the CCC issue-level rating on the company's $120 million second-lien term loan due 2023. The 6 recovery rating is unchanged, indicating an expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a payment default.

“We believe Quality Distribution's credit measures will remain relatively unchanged relative to our expectations following the proposed add-on because the company will use most of the proceeds from the transaction to repay the outstanding balance on its revolving credit facility,” S&P said in a news release.

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