S&P rates Energize B, loans B, CCC+

S&P said it gave Energize Holdco LLC and its planned first-lien debt B ratings. The agency also assigned a CCC+ rating to its proposed second-lien debt. The recovery rating on the first-lien debt is 3, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in default and a 6 rating to the company's second-lien debt indicating an expectation for negligible recovery in default.

Warburg Pincus agreed to acquire TRC Cos. Inc. The financing includes a $115 million revolver, a $635 million first-lien term loan, a $95 million first-lien delayed-draw term loan, a $210 million second-lien term loan and $30 million second-lien delayed-draw term loan.

“We anticipate Energize's S&P Global Ratings-adjusted debt to EBITDA will increase above 6.5x in fiscal 2022; however, we expect it to approach 6x in 2023.We expect top-line growth from the company's increased, higher-margin backlog, comprised of contracted and executable work. The company's field work has improved as work resumed from stoppages, which affected the company's fiscal 2020 operating performance,” the agency said in a press release.

The outlook is stable.

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