S&P rates Heckmann notes B-

Standard & Poor's said it assigned a B+ corporate credit rating to Heckmann Corp., along with a B- rating and 6 recovery rating to the company's $250 million senior unsecured notes.

The 6 recovery rating indicates 0% to 10% expected recovery in a default.

The outlook is stable.

The proceeds, along with $80 million from an equity issuance, $17.5 million of equity held in escrow and $63 million of existing cash, will be used to refinance its secured credit facilities and to acquire Thermo Fluids Inc., S&P said.

The ratings reflect the company's weak business risk profile and aggressive financial risk profile, S&P said.

The company's operations are subject to the supplies and pricing of oil and gas since adverse commodity price movements may impact the future development and growth rates of shale fracking, the agency said.

Despite favorable credit measures at the outset, S&P said it expects the company to continue to make tuck-in acquisitions from time to time, many of which may require debt financing.

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