S&P rates Wesco Aircraft loan B+

S&P said it assigned its B+ issue-level rating and 3 recovery rating to Wesco Aircraft Holdings Inc.'s proposed $600 million credit facility, which will be issued by its subsidiary Wesco Aircraft Hardware Corp.

The facility comprises a $200 million revolving credit facility due 2021 and a $400 million term loan A due 2021. The 3 recovery rating reflects an expectation for meaningful (50%-70%; lower half of the range) recovery in the event of a payment default.

At the same time, S&P affirmed its B+ corporate credit rating on Wesco. The outlook remains positive.

“The affirmation reflects the slightly positive impact that the proposed refinancing will have on Wesco's interest expense and that the more gradual step downs of the leverage covenant in the new facility – along with continued revenue and earnings growth – should allow the company to improve its liquidity over the next year,” said S&P credit analyst Tennille Lopez in a news release.

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