S&P gives Sierra Enterprises loan CCC+

S&P said it assigned CCC+ issue-level and 3 recovery ratings to Sierra Enterprises LLC’s recently executed $277 million tranche B-2 first-lien term loan due in 2027. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 55%) recovery in default.

The CCC+ and 3 ratings on the tranche B-1 term loan are unchanged, and it has a balance of $623,000 with an original maturity date of November 2024.

The amend and extend transaction pushed out the company's key maturities by two and a half years. The company's $35 million first-lien revolver is now due in February 2027, its $277 million tranche B-2 term loan is due in May 2027, and its unrated second-lien term loan is now due in May 2028, the agency said.

“Although we view the maturities extension as credit positive because it pushed out Sierra's near-term maturity risk, our CCC+ issuer credit rating and negative outlook are unchanged,” S&P said in a press release.

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