S&P stabilizes LaserShip outlook

S&P said it revised its outlook for LaserShip Inc. (OnTrac) to stable from negative and affirmed the CCC+ ratings on the company and its senior secured first-lien debt. The agency also affirmed the CCC- rating on the senior secured second-lien debt.

The company recently issuance a $125 million add-on to its first-lien term loan, which it will use to repay the $104 million balance on its revolving credit facility, has improved its liquidity position.

“The stable outlook reflects our view that the increased availability under its revolving credit facility will be sufficient to cover its modest near-term cash flow deficits. Despite the softer macroeconomic environment and higher interest rates, we expect OnTrac will gradually improve its cash flow supported by rising volumes,” S&P said in a press release.

The agency said it forecasts OnTrac to deliver break-even free operating cash flow in 2025.

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