S&P rates Acuren, loan B

S&P said it assigned B ratings to Rockwood Service Corp., which does business as Acuren and its planned $430 million term loan due 2027 and $75 million senior secured revolver due 2025. S&P also assigned a recovery rating of 3 indicating an expectation for a meaningful recovery (50%-70%: rounded estimate 50%) in the event of a default.

The agency projects the company’s debt to EBITDA will remain in the mid-4x area in 2020 and improve slightly though 2021. The company has a strong presence in nondestructive testing market and maintenance services within North America.

“As refineries in North America continue to outsource inspection and maintenance of aging assets, we expect Rockwood’s brand reputation will bolster revenue growth. The company has implemented some technology initiatives to manage on-site labor and efficiency, and we anticipate EBITDA margins in the low- to mid-teens percentage area,” S&P said in a press release.

The outlook is stable.

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