S&P lowers Hi-Crush loan

S&P said it lowered the issue-level rating on Hi-Crush Partners LP's $200 million senior secured term loan to B- from B.

At the same time, the agency revised the recovery rating to 3 from 2, indicating an expectation for meaningful (50% to 70%; rounded estimate: 65%) recovery in the event of a payment default.

The change in the recovery rating is due to the upsize of the revolving credit facility to $150 million from $75 million, adding secured debt to the agency’s hypothetical default scenario and reducing recovery prospects, S&P said.

The company is extending its senior secured term loan maturity to 2024 from 2021 and extending the revolver maturity to 2022 from 2019.

The outlook is stable.

The agency said the B- corporate credit rating is unchanged because it believes the increase in the revolver does not affect the credit ratios.

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