S&P rates Terra Millennium revolver, loan B

S&P said it assigned a B corporate credit rating to Terra Millennium Corp.

The agency also said it assigned a B rating and 3 recovery rating to the company's proposed $40 million revolving credit facility due 2021 and $175 million first-lien term loan due 2022.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The outlook is stable.

The ratings reflect the company's position as a leading player in the refractory services market, along with its diverse end markets and strong customer base, S&P said.

The ratings consider that nearly 70% of the company's annual earnings come from recurring revenue sources, the agency said.

But the company’s modest scale, concentrated footprint in the United States and relatively narrow focus in a niche market offset these strengths, S&P said.

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