S&P rates Smyrna Ready Mix, loan B+

S&P said it gave B+ ratings to Smyrna Ready Mix Concrete LLC and its planned seven-year $315 million senior secured term loan B. The loan’s recovery rating is 3.

“SRM is a newly rated entity that has experienced large revenue growth due to debt-financed acquisitions through 2019 and 2020. We anticipate the company to maintain its current leverage metrics of 4x to 4.5x debt to EBITDA into 2021 on a pro forma basis, with potential for further improvement in EBITDA margins and leverage metrics thereafter, depending on the success of existing integration efforts and future acquisition activity.,” S&P said in a press release.

The company will use proceeds to fund acquisitions, refinance indebtedness, and other general corporate purposes.

The outlook is stable.

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