S&P affirms SeaStar after loan add-on

S&P said it affirmed the B corporate credit rating on Marine Acquisition Holdings Inc., which does business as SeaStar Solutions.

The outlook is stable.

The agency also said it affirmed the B rating on the company's proposed upsized and amended $300 million term loan B due 2021, which includes the proposed $90 million add-on.

The recovery rating on this debt remains at 3, indicating 50% to 70% expected default recovery.

The recovery remains at 3 despite the additional proposed secured debt in the capital structure, the agency said.

The proceeds of the add-on, along with cash balances, will be used to pay a dividend to the company’s owners, S&P said.

The proposed incremental leverage that the company will assume when the transaction closes does not meaningfully impair SeaStar's financial risk, the agency said.

The ratings also continue to consider a view that financial sponsor-owned companies will periodically increase leverage to return capital to shareholders, S&P said

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