S&P cuts FR BR Holdings

S&P said it lowered its ratings for FR BR Holdings and its senior secured term loan to CCC from CCC+. The loan’s 3 recovery rating is unchanged.

“The downgrade reflects our expectation that FR BR may face difficulties in refinancing its upcoming maturity on its $460 million term loan B,” S&P said in a press release. The loan matures on Dec. 14.

“We continue to expect an elevated adjusted debt to EBITDA of about 8.5x-9.0x in 2023 due to the reduced distributions from its investee company, Blue Racer Midstream. We also forecast the company will have limited cushion to its financial covenant and expect its interest coverage to be about 1.2x-1.3x in 2023. The elevated financial measures could limit the company's ability to successfully refinance its upcoming debt maturity at satisfactory terms,” the agency said.

The ratings remain on CreditWatch with developing implications to indicate the uncertainty over the timing of the company refinancing its term loan.

© 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.