S&P affirms TRC after loan add-on

S&P said it affirmed its B issue-level rating on TRC Cos. Inc.'s senior secured credit facility following the company’s proposed $43 million term loan add-on. The 3 recovery rating remains unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default.

The company plans to use the proceeds from the proposed $43 million add-on to repay its outstanding revolver balance, to fund a near-term acquisition and for general corporate purposes.

“Following the proposed add-on, we expect TRC's credit measures to remain in line with our previous expectations, including adjusted debt to EBITDA of around 5.5x as of the end of fiscal year 2019 (ending June 30, 2019),” S&P said in a news release.

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