S&P rates Ahern Rentals notes B

Standard & Poor’s said it affirmed its B corporate credit rating on Ahern Rentals Inc. The outlook is stable.

At the same time, S&P assigned a B issue-level rating to the company’s proposed $500 million secured second-lien notes due 2023. The 4 recovery rating indicates an expectation for average recovery (30% to 50%; in the upper half of the range) if a payment default occurs.

In addition, S&P affirmed the B issue-level rating on the company’s existing senior secured second-lien notes due 2018. The recovery rating on this debt remains 4, indicating an expectation for average (30% to 50%; upper half of the range) recovery.

S&P expects Ahern to use transaction proceeds to refinance its 9˝% senior secured second-lien notes due 2018, repay a portion of debt outstanding under its asset-based lending facility, repay a shareholder contribution, and pay deal-related premiums and fees.

“The affirmation of our B rating on Ahern reflects our view that the proposed transaction does not materially change the company’s financial risk profile, while the stable outlook reflects our expectation that it will maintain leverage of 4x to 5x and funds from operations to total debt in the high teens,” said S&P credit analyst Terence Lin in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.