S&P puts Ahern Rentals on positive watch, rates notes CCC+

S&P said it placed its CCC+ issuer credit rating on Ahern Rentals Inc. on CreditWatch with positive implications.

At the same time, S&P assigned preliminary CCC+ issue-level and 5 recovery ratings to the company's proposed $550 million second-priority senior secured notes due 2026.

The company plans to use the net proceeds to refinance its existing $550 million senior secured notes due 2023.

“The CreditWatch placement indicates the likelihood for an upgrade by one notch to B- with a stable outlook, if the refinancing is successful and the company applies the proceeds from the $50 million affiliate loan repayment, net of refinancing transaction fees, to repay a commensurate portion of asset-based loan (ABL) borrowings,” S&P said in a news release.

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