S&P rates Mavis loan B-

S&P said it gave Mavis Tire Express Services Corp.’s planned incremental $470 million term loan a B- rating with a 3 recovery rating (50%-70%, rounded estimate 55%).

Mavis agreed to acquire Town Fair Tire Centers, funded with the planned term loan, seller rollover equity, and balance sheet cash.

The agency also revised the outlook to stable from negative. “The stable outlook reflects our expectation that Mavis will continue to increase revenues and EBITDA on same-store sales increases and acquisition synergies, improving highly leveraged credit metrics over the next 12 months,” S&P said in a press release.

S&P also affirmed Mavis’ B- issuer rating and the ratings on its outstanding first- and second-lien term loan facilities and maintaining the respective 3 and 6 recovery ratings.

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