S&P rates Omnitracs facility B

S&P said it assigned a B issue-level rating and 3 recovery rating to Omnitracs LLC's proposed $795 million credit facility, comprising a $50 million first-lien revolver and a $745 million first-lien term loan.

The 3 recovery rating indicates an expectation of meaningful (50% to 70%; rounded estimate: 50%) recovery in the event of default.

The B corporate credit rating and stable outlook remain.

The agency said it expects the company to use proceeds from the offering to retire its existing first-lien term loan and second-lien term loan.

“The transaction will not materially affect leverage,” S&P said in a news release.

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