S&P rates Terra Millennium loan B

S&P said it affirmed the B corporate credit rating on Terra Millennium Corp. and affirmed the B issue-level rating on the company's $40 million revolving credit facility due 2021 and $175 million first-lien term loan due 2022.

The 3 recovery rating remains, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in the event of a payment default.

In addition, the agency assigned a B issue-level rating to the company's $41.1 million incremental first-lien term loan due 2022. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%).

The outlook is stable.

“The affirmation follows TMC's announcement that it will use the proceeds from its proposed $41.4 million incremental term loan, along with rollover equity from management and new equity from its financial-sponsor owners, to fund the acquisition of a refractory service provider,” S&P said in a news release.

“Despite the increase in the company's total amount of outstanding debt, we believe that its pro forma credit measures will remain in line with our expectations for the current rating.”

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