S&P trims MVK loans

S&P said it trimmed MVK Intermediate Holdings LLC’s senior secured revolver due 2024 and senior secured first-lien term loan due 2026 to CCC+ from B-. The agency also lowered the recovery rating to 3 from 2 because of lower estimated enterprise value after asset sales.

However, the agency affirmed MVK’s CCC+ issuer rating and removed all its ratings from CreditWatch with negative implications, where they were placed on March 19.

To strengthen its liquidity, MVK sold noncore citrus and almond orchards. It used proceeds to repay more than $45 million of debt, including borrowings on its revolving credit facility and to fund about $20 million in working capital in the first quarter. “The restored availability on its $61 million revolving credit facility maturing in 2024 should fund its remaining seasonal working capital, which can be as high as $80 million in the coming months,” S&P said in a press release.

The agency noted MVK plans to lower its debt by at least another $45 million in 2021.

The outlook is negative.

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