S&P Michael Baker unchanged after add-on

Standard & Poor's said the ratings on Michael Baker International LLC and its holding company are unchanged following the increase in the amount of notes issued by Michael Baker Holdings LLC to $150 million from $125 million.

The rating on the upsized senior unsecured payment-in-kind notes remains at B- and the recovery rating remains at 6, indicating 0% to 10% expected default recovery.

Michael Baker International has a corporate credit rating of B+, along with a B+ senior secured rating with recovery rating of 3.

The holding company is issuing the proposed $150 million senior payment-in-kind notes for a distribution to its financial sponsor, S&P said.

The add-on will increase the company's debt-to-EBITDA ratio to 5.8x at the close of the dividend recapitalization transaction, up from 5.6x previously, the agency said.

Leverage is expected to decline to the mid-4x range over the next 12 months, reflecting organic revenue growth, S&P said.

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