S&P gives B rating to Truck Hero loans

Standard & Poor’s said it assigned its B corporate credit rating to Truck Hero Inc. The outlook is stable.

At the same time, S&P assigned a B issue-level and 3 recovery rating to the company’s proposed $390 million term loan and $50 million revolver. The 3 recovery rating indicates an expectation that debtholders would realize meaningful recovery (50%-70%; lower half of the range) in the event of a payment default.

“The ratings reflect our view that the company – while a leading provider of truck bed covers for pickup trucks – remains a relatively niche participant in the broader auto supplier market,” said S&P credit analyst Lawrence Orlowski in a news release.

“Moreover, the company sells what we view as discretionary products, it must successfully adapt to changes in consumer preferences to stay competitive, and it faces some integration risk given the aggressive pace of its acquisitions.”

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