S&P gives B to EnTrans notes

Standard & Poor's said it assigned its B corporate credit rating to EnTrans International LLC.

The outlook is stable.

At the same time, the agency assigned its B issue-level rating to EnTrans' proposed $250 million senior secured notes due 2020. The recovery rating on the notes is 3, indicating an expectation for meaningful (50% to 70%) recovery to creditors in the event of a payment default.

"EnTrans International will use proceeds from the proposed secured notes to refinance existing debt at Heil Trailer International and Serva Financing LLC, both of which are majority-owned portfolio companies of private equity firm American Industrial Partners," S&P credit analyst Carin Dehne-Kiley said in a news release.

EnTrans will also enter into a new $70 million asset-based loan revolving credit facility due 2019 and availability will be subject to a borrowing base. The agency expects the revolver to be undrawn at the close of the transaction.

S&P said the ratings reflect its view of EnTrans’ "vulnerable" business risk and "highly-leveraged" financial risk profiles, "favorable" comparable ratings analysis and its assessment of liquidity as "adequate."

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