S&P upgrades Smyrna Ready Mix

S&P said it raised its ratings for Smyrna Ready Mix Concrete LLC and its senior secured notes and loan to BB- from B+. The 3 recovery rating (rounded estimate: 50%) is unchanged.

Smyrna plans to borrow a $300 million fungible incremental term loan B to refinance debt including borrowings to fund the November acquisition of Vulcan Materials Co.'s Northeastern ready mix concrete facilities for roughly $180 million.

“We expect sales price increases to offset persistent inflationary pressure on raw materials such as cement, labor and fuel. As such, we believe Smyrna's S&P Global Ratings-adjusted EBITDA margins will remain relatively stable throughout fiscal years (FYs) 2023 and 2024,” the agency said in a statement.

The outlook is stable.

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