S&P runs Vertex down to B-

S&P downgraded Vertex Energy Inc. to B- from B and placed the company on CreditWatch negative.

The issue-level rating on senior secured debt was also downgraded to B from B+.

The recovery rating of 2 on the company's senior secured term loan B is unchanged.

The action follows the company’s announcement of its full-year 2023 financial results. Leverage was 12.9x, spurred by lower-than-expected EBITDA due to unfavorable margin pressure in the conventional refinery and renewable diesel business.

Adjusted leverage is forecasted to be about 9.2x in 2024.

Vertex is not expected to generate sufficient cash flows in 2024 to fully retire its senior secured term loan B when it is due in April 2025. This near-term maturity and lower EBITDA generation is associated with greater liquidity risk and a potentially unsustainable capital structure.

© 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.