S&P rates Speedcast, loan B

S&P said it gave B ratings to Speedcast Holdings III LLC and its planned $300 million term loan. The loan’s recovery rating is 3, indicating meaningful (50%-70%) recovery in default.

“Our rating is constrained by Speedcast's high S&P Global Ratings-adjusted financial leverage and private-equity ownership. We forecast the company's debt to EBITDA will improve to about 5x by the end of 2022 as it benefits from a recovery in its cruise segment and realizes significant cost savings from the previously implemented parts of management's transformation plan. We believe Speedcast's leverage could approach 4x by mid-2023 as the costs to achieve its synergies roll off,” S&P said in a press release.

The outlook is stable.

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