S&P affirms Badger loan

S&P said it affirmed its B+ issue-level rating on the term loan issued by Badger Holding LLC's subsidiary, Safway Group Holding LLC, following a proposed $160 million add-on.

The company will use the proceeds from the proposed add-on, along with additional borrowings under its asset-based lending revolver (not rated), to finance the proposed acquisition of SafeWorks LLC.

“The ratings on Badger Holdings reflect our expectation that the company will maintain an adjusted debt-to-EBITDA metric of about 4x in 2017 while retaining good prospects for free cash flow generation over the next two years,” S&P said in a news release. “Our ratings also reflect the company's high exposure to the cyclical industrial and commercial end markets where it can face significant pricing pressure.”

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