S&P lowers Road Infrastructure loan

S&P said it revised the recovery rating on Road Infrastructure Investment Holdings Inc.'s first-lien debt to 3 from 2 based on an increase in the size of the company's revolving credit facility.

As a result of this revision, the agency said it lowered the rating on the first-lien debt to CCC+ from B-.

The CCC+ issuer credit rating and CCC- issue-level rating and 6 recovery rating on the company's second-lien term loan are unchanged.

The outlook remains negative, reflecting an expectation that debt leverage will remain at unsustainable levels, S&P said.

The lower recovery prospects follow the company upsized revolving credit facility to $135 million from $75 million in the second quarter, the agency said.

In addition, the recovery valuation is slightly lower to reflect the weaker-than-expected 2018 results, S&P said.

As part of the amendment to the credit facility, the company also redrew covenants to allow for increased cushion under its first-lien net leverage covenant, the agency said.

The company is now subject to an 8.5x covenant in the second quarter of 2019, which gradually steps down to 7x by March 2021, 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.