S&P rates ADS Tactical loan B

S&P said it assigned its B issue-level rating to ADS Tactical Inc.'s proposed $236.6 million amended secured term loan due 2023. The 4 recovery rating indicates expectations of an average (30%-50%; rounded estimate: 30%) recovery in a default.

The company has decided not to go ahead with plans to use the proceeds from a new $330 million term loan B to refinance its existing debt.

“We had assigned ratings to the proposed term loan on May 2, 2018, and we are now withdrawing those ratings. The company will instead amend its existing term loan and $69.3 million of secured notes (unrated) to extend maturities to July 2023 from December 2022 and reduce the pricing on the term loan,” S&P said in a news release.

It will also enlarge its asset-backed lending (ABL) facility to $200 million from $150 million and extend the maturity to 2023 from 2020.

The corporate credit rating on ADS Tactical is B with a stable outlook.

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