S&P assigns Enerflex notes BB-

S&P said it rated Enerflex Ltd.’s planned $625 million senior secured notes due 2027 BB- with a 3 recovery rating. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 55%) recovery if a default occurs. Enerflex is merging with Exterran.

Eneflex’s BB- issuer rating and stable are outlook are unchanged, the agency said.

Enerflex intends to use the proceeds, an unrated $150 million secured term loan, cash on hand and borrowings under its $700 million revolving credit facility, to refinance the debt at both companies and pay fees and expenses. After the merger, the notes will be secured but junior to the priority revolver and term loan, which will have first-out status under the collateral agreement.

© 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.