S&P rates American Trailer loans B

S&P said it assigned B ratings to American Trailer World Corp.’s planned $750 million term loan B due 2028 and $65 million revolving credit facility due 2026. The recovery rating on the loans is 4, indicating an average (30%-50%; rounded estimate: 45%) recovery in default.

Proceeds are expected to be used to refinance its $670 million of senior secured notes due 2023, which is rated B, and pay associated breakage fees, as well as add cash to the balance sheet.

“The proposed refinancing of its capital structure benefits the debt maturity profile, extending the term loan B and revolving credit facility maturities out to 2028 and 2026, respectively, compared with the senior secured notes due 2023, and greatly reduces the interest expense payments, as the existing senior secured notes had an interest rate of 9 5/8% and the new term loan B is expected to be materially less,” the agency said in a press release.

Concurrently, the agency affirmed American Trailer’s B issuer rating and revised its outlook to stable from negative, reflecting the view the company will continue to enjoy reliable operational performance and will be able to keep its adjusted debt-to-EBITDA ratio at the lower end of the 4x-5x range through 2022.

© 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.