S&P ups TPC Group, rates new notes B

S&P said it raised its issuer credit rating on TPC Group Inc. and the ratings on the company's existing 2020 senior notes to B from B-. The recovery rating on the 2020 notes remains 4, reflecting an expectation of average (30%-50%; rounded estimate 35%) recovery in the event of a payment default.

S&P said it plans to withdraw issue-level ratings on the 2020 notes once the new proposed notes are funded and the 2020 notes are redeemed.

At the same time, S&P said it assigned B issue-level and 4 recovery ratings to the proposed $930 million of new senior secured notes due 2024.

The outlook is stable.

In addition, the company will put in place a new $200 million asset-backed lending (ABL) credit facility (unrated), proceeds of which will primarily repay existing debt and transaction-related fees.

“The upgrade reflects TPC's meaningful financial improvement leading to strengthened credit metrics, resulting from increased reliability at its facilities and restructured contracts resulting in improved volumes,” S&P said in a news release.

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