S&P rates Sunstate Equipment notes B

Standard & Poor's said it assigned its B corporate credit rating to Sunstate Equipment Co. LLC and its CCC+ rating to the company's proposed $175 million senior secured notes (with a second-priority lien) due 2012. The outlook is stable.

The company will also enter a new unrated senior secured $150 million four-year revolving credit facility, secured by first-priority liens, to fund future equipment purchases and working-capital needs.

Sunstate will use the proceeds from these notes to repay all existing debt outstanding, make a distribution to the principal owner Michael Watts and buy out minority owners.

S&P said the ratings on Sunstate Equipment reflect our assessment of its well-below-average business profile as an operator in a highly fragmented and competitive industry with limited diversity, high capital-equipment purchases and limited financial flexibility.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.