Fitch gives BB+ to Harsco term loan

Fitch Ratings said it assigned an expected rating of BB+/RR1 to Harsco Corp.’s planned $550 million seven-year senior secured term loan B facility.

The agency also affirmed its rating of BB+/RR1 on Harsco's senior secured revolver, which is expected to be upsized from $350 million to $400 million with a five-year maturity.

In addition, Fitch affirmed Harsco's long-term issuer default rating at BB and its senior unsecured notes at BB/RR4.

The outlook is stable.

The new credit facilities will strengthen Harsco's balance sheet by extending debt maturities and eliminating refinancing risk relating to its senior unsecured notes, Fitch said.

Proceeds from the new $550 million term loan, together with borrowings on the revolver, will be used to repay the company's existing term loan A, of which $159 million was outstanding as of Sept. 30, and its $450 million of 5.75% senior unsecured notes that mature in May 2018.

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