Moody’s rates Great Lakes Dredge notes Caa1

Moody's Investors Service said it affirmed Great Lakes Dredge & Dock Corp.’s B3 corporate family rating and B3-PD probability of default rating.

Concurrently, the agency assigned a Caa1 rating to the company's proposed $325 million issuance of senior unsecured notes due 2022 and affirmed its SGL-3 speculative grade liquidity rating.

The Caa1 ratings for the existing senior unsecured notes ($275 million), which are being refinanced, will be withdrawn upon closing of the transaction. Excess net proceeds from the offering will be used to term out current borrowings under the company's unrated asset-based revolving credit facility (about $44 million).

The outlook is stable.

"The recapitalization of senior notes follows the company's December 2016 arrangement of a new ABL facility and is an important step in addressing mounting refinancing risk, which had weighed heavily on Great Lakes' credit profile," Natalia Gluschuk, Moody's lead analyst for the company, said in a news release.

"Even so, the company's ratings remain somewhat constrained by relatively muted expectations with respect to free cash flow generation and modest liquidity provisions."

© 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.