S&P rates Ashtead notes BB-

Standard & Poor’s said it assigned a BB- rating to the proposed $400 million 10-year senior secured second-lien notes to be issued by Ashtead Capital Inc., a subsidiary of Ashtead Group plc, which will guarantee the notes.

The proposed notes have a recovery rating of 5, indicating 10% to 30% expected default recovery.

The amount and coupon on the proposed notes will depend on market conditions, S&P said.

The agency also said it affirmed the BB long-term corporate credit rating on Ashtead.

The outlook remains positive.

S&P also said it affirmed the BB- rating on the company’s existing $900 million senior secured second-lien notes. The recovery rating on the existing notes is 5.

The affirmation follows news that Ashtead is proposing to issue $400 million second-lien notes due 2024.

Ashtead will use the increased availability under the revolver partly to finance increased capital expenditures and ongoing bolt-on acquisitions, given favorable conditions in rental equipment markets, S&P said.

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