S&P ups Odyssey Logistics

S&P said it raised its rating on Odyssey Logistics & Technology Corp. to B from B- and affirmed its senior secured loan at B but revised the recovery rating to 3 from 2.

“The upgrade reflects the sustained improvement in Odyssey's credit metrics due to the steady recovery in intermodal and freight forwarding demand since the start of the pandemic, its reduced refinancing risk, and its further deleveraging through debt repayment. These factors are partially offset by the weaker expected macroeconomic environment in 2023 and the company's continued financial-sponsor ownership,” S&P said in a press release.

Odyssey plans to amend its existing first-lien term loan and revolving credit facility to extend their maturities to October 2027 and July 2027, respectively. Additionally, the company plans to use the proceeds from the April sale of its Linden bulk tank transportation business toward repayment of the $106 million outstanding balance on its second-lien term loan.

“We view Odyssey's proposed repayment of its debt as credit positive because the interest savings will offset the effect of higher interest rates,” S&P said.

The outlook is stable.

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