S&P gives B-, CCC to Traeger loans

S&P said it assigned its B- issue-level rating and 3 recovery rating to the proposed $391.4 million first-lien debt of TGP Holdings III LLC (B-/positive/--), parent of Traeger Pellet Grills.

The facility consists of a $50 million revolving credit facility maturing in 2022, $301.4 million first-lien term loan maturing in 2024 and $40 million delayed-draw term loan that will be fungible with the first-lien term loan. The recovery rating of 3 reflects an expectation of meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a payment default.

The CCC issue rating and 6 recovery rating on the company's $115 million second-lien term loan maturing in 2025 are unchanged. The 6 recovery rating indicates an expectation of negligible recovery (0-10%; rounded estimate: 0%) in the event of a payment default.

“Our B- rating on TGP reflects our view of the company's narrow product scope, geographic and regional concentrations, participation in the smaller wood pellet grill category, and the highly discretionary nature of its products,” S&P said in a news release.

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