S&P affirms TRC after add-on

S&P said it affirmed the B rating on TRC Cos. Inc.'s senior secured credit facilities.

The 3 recovery rating on the facilities is unchanged, indicating 50% to 70% expected default recovery.

TRC plans to issue a $10 million add-on to its proposed $315 million first-lien term loan and will use the proceeds from the add-on to place additional cash on its balance sheet, S&P said.

The upsizing does not affect the ratings on the company's senior secured credit facilities and does not change the forecast that the company will maintain a debt-to-EBITDA metric of higher than 5x over the next 12 months and a free operating cash flow-to-debt ratio of more than 5%, the agency said.

The ratings reflect the company's position as a niche engineering, consulting and construction management firm that participates in multiple end markets across the United States, S&P said.

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