S&P gives Generac loan BB

S&P said it assigned its BB issue-level rating and 3 recovery rating to Generac Power Systems Inc.'s proposed $830 million senior secured term loan B due 2026. The 3 recovery rating reflects S&P’s expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in the event of a payment default.

The company plans to use the proceeds along with $49 million in cash to replace its $879 million senior secured term loan B. “We view this transaction as leverage neutral,” said S&P in a press release.

The outlook is stable.

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