S&P rates LaserShip B-

S&P said it gave ASP LS Acquisition Corp. (LaserShip) and its planned $675 million first-lien term loan B- ratings. The loan’s recovery rating is 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in payment default. The agency also assigned CCC and 6 recovery ratings to its proposed $205 million second-lien loan. The 6 rating, reflects an expectation for negligible (0%-10%; rounded estimate: 0%) recovery.

“We anticipate LaserShip's adjusted debt to EBITDA will decline toward 7x and funds from operations (FFO) to debt will be in the high-single-digit percent area over the next 12 months. LaserShip experienced significant top-line and earnings growth in 2020, benefiting from the trend of continuing adoption of e-commerce, accelerated further by the Covid-19 pandemic. LaserShip's total package delivery volumes increased 72% to 96 million in 2020 from 56 million in 2019. For 2021, we expect this favorable secular tailwind will continue, which should drive volume expansion and earnings growth,” S&P said in a press release.

LaserShip is being acquired by American Securities LLC.

The outlook is stable.

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