S&P rates Tank facilities B

S&P said it revised its outlook on Tank Holding Corp. to stable from negative and affirmed its B corporate credit rating.

At the same time, the agency assigned its B issue-level and 3 recovery rating to the company's proposed first-lien credit facilities, which include a $50 million revolver and a $382 million first-lien term loan.

The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

Proceeds from the facilities will be used to refinance and reprice the company's existing first-lien debt.

S&P said the outlook revision reflects an expectation that the company's debt leverage will decline and remain below 6.5x, from 6.6x as of Sept. 30, 2017, over the next 12 months.

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