S&P cuts, rates FR Refuel loan B-

S&P said it lowered the rating on FR Refuel LLC’s first-lien secured credit facilities to B- from B and assigned a B- rating to its planned incremental non-fungible $120 million secured first-lien term loan. The agency also lowered the recovery ratings for its loans to 3 (50%-70%, rounded estimate: 60%) from 2 (70%-90%).

“Our ratings reflect our forecast for elevated leverage and an aggressive acquisitive strategy. We project credit protection measures will remain elevated with S&P Global Ratings-adjusted leverage in the low- to mid-6x area by the end of 2023. Our projections consider, in part, FR Refuel's recent acquisitions and the planned issuance of an incremental non-fungible $120 million term loan, ranked pari passu to the existing term facility,” the agency said in a press release.

FR Refuel plans to use the new loan to pay down revolver borrowings, partially fund recent acquisitions and for general corporate purposes.

The outlook is stable.

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