S&P gives Ritchie Bros. notes BB

S&P said it assigned preliminary BB issue-level and 4 recovery ratings to the planned about $935 million equivalent of senior unsecured notes issuances by Ritchie Bros. Auctioneers Inc.'s subsidiaries. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 30%) recovery in default.

The notes will be issued in two series by Ritchie Bros. Holdings Inc.'s U.S.-dollar-denominated unsecured notes due 2031 and Ritchie Bros. Holdings Ltd.'s Canadian-dollar-denominated unsecured notes due 2029.

“We expect the noteholders' claim will rank pari passu with the company's existing senior unsecured lenders and that the notes would be guaranteed by RBA on consummation of the company's previously announced acquisition of the Euro Auctions Group,” the agency said in a press release.

The proceeds will be used to fund the acquisition but will remain in escrow accounts until the acquisition closes.

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