S&P gives B to Aquilex loan

Standard & Poor's said it assigned its B corporate credit rating to Aquilex Intermediate Holdings LLC.

The outlook is stable.

At the same time, based on preliminary terms and conditions, the agency assigned a B issue-level rating (the same as the corporate credit rating) and a recovery rating of 3 to the proposed $300 million first-lien senior secured facility under which the co-borrowers will be Aquilex LLC and Aquilex Corporate Holdings LLC. The 3 recovery rating indicates an expectation of meaningful (50% to 70%) recovery in the event of payment default.

The facility consists of a $50 million revolving credit facility due 2019 and a $250 million first-lien term loan due 2020.

Aquilex plans to use the new credit facilities for the acquisition and to refinance existing debt.

"The ratings on Aquilex reflect our assessment of its business risk profile as 'weak' and its financial risk profile as 'highly leveraged'," S&P credit analyst Pranay Sonalkar said in a news release. The agency assesses the company's management and strategy as "fair."

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