S&P rates Gopher, facilities B

S&P said it assigned its B corporate credit rating to Gopher Resource, LLC.

The outlook is positive.

At the same time, the agency assigned a B corporate credit rating to ECP Gopher Holdings, LP and a B issue-level rating to its proposed credit facilities, consisting of a $450 million first-lien term loan due 2025 and a $40 million revolving credit facility due 2023.

The recovery rating is 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

S&P said the corporate credit rating reflects Gopher's elevated debt leverage, financial sponsor ownership, small size and scale (with about $350 million in annual revenue), significant customer and asset concentration and environmental risks associated with operating a lead processing facility.

However, this is offset by Gopher's generally stable volumes and short- to medium-term customer contracts lasting between one and five years, the agency said.

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