S&P lowers Commercial Barge

Standard & Poor’s said it lowered the rating on Commercial Barge Line Co.’s proposed first-lien senior secured term loan to B from B+ and revised the recovery rating to 3 from 2.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The lower rating on the proposed term loan reflects the revised terms of the company’s proposed refinancing, S&P said.

Although the total amount of proposed debt at closing is unchanged, the agency said it now assumes a higher amount of priority claims outstanding at default.

The company no longer plans to issue the formerly proposed $200 million second-lien term loan C, but will instead increase the proposed senior secured first-lien term loan by $50 million and further increase borrowings under its proposed asset-backed lending facility by the remaining $150 million at closing, S&P said.

The proposed five-year first-lien senior secured term loan is now $1.15 billion, whereas the company previously proposed a seven-year $1.1 billion first-lien term loan, the agency said.

At closing, S&P said it now expects borrowings under its proposed $550 million ABL revolver to be about $390 million, compared to a previous assumption of $240 million drawn at closing.

The company’s B corporate credit rating and stable outlook are unaffected, as the total amount of proposed debt outstanding at closing is unchanged, S&P added.

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