S&P rates TRAC loan B+

S&P said it rated the planned $350 million second-lien term loan due 2030 that Stonepeak Taurus Lower Holdings LLC (TRAC Intermodal) plans to borrow B+ with a 2 recovery rating (70%-90%; rounded estimate: 80%). The agency also assigned TRAC a B issuer rating.

“We expect the company to increase its revenue by about 40% in 2021, reflecting strong fleet utilization and favorable pricing dynamics. We forecast its revenue will remain relatively flat in 2022 as demand conditions moderate somewhat in the second half of the year, albeit remaining much stronger than pre-pandemic levels,” S&P said in a press release.

TRAC plans to use the loan proceeds to finance a dividend to its sponsor, Stonepeak Infrastructure Partners.

The outlook is stable.

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