S&P rates PECF loan, notes B-, notes CCC

S&P said it gave B- ratings to PECF USS Intermediate Holding Corp. (United Site Services), its senior secured credit facilities and secured notes and a CCC rating to its senior unsecured notes. The recovery rating on the secured debt is 1 and 3 on the unsecured notes. The outlook is stable.

The agency also affirmed all its ratings on USS Ultimate Holdings Inc., including the B- issuer credit rating, and revised the outlook to stable from positive.

“Our B- issuer credit rating reflects USS' aggressive financial policies and our expectation that credit metrics will remain highly leveraged following this transaction. We expect a significant increase in leverage, as balance sheet debt increases to about $2.6 billion from about $1.2 billion as of June 2021. As a result, we expect S&P Global Ratings-adjusted debt to EBITDA of about 7x on a weighted-average basis, compared to about 4x at the end of June,” S&P said in a press release.

United Site Services will use the proceeds as part of a recapitalization.

The stable outlook reflects an expectation that United Site Services’ operating performance should continue to improve into 2022, driven by increased pricing and organic volume growth. “As a result, we believe that while debt to EBITDA will be elevated at the close of this transaction, USS will deleverage over the next two years, largely on EBITDA growth,” S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.