S&P rates Storable B-, loans B, CCC

S&P said it assigned a B- rating to Storable Inc., a B rating with a 2 recovery rating to its planned $425 million first-lien term loan and a CCC rating with a 6 recovery rating to its planned $150 million second-lien loan.

Storable plans to use the proceeds to partially fund the $2 billion leveraged buyout by financial sponsor EQT Partners.

“High starting leverage, growth investment needs, and financial sponsor ownership will likely keep adjusted leverage higher than 8x through 2022. Our ratings reflect Storable’s very high adjusted leverage, over 10x on an S&P Global Ratings’ adjusted basis pro forma as of Dec. 31, 2020, and the risk that financial policy remains aggressive under its new financial sponsor owner EQT Partners,” S&P said in a press release.

The outlook is stable. “In 2021, we expect organic revenue growth in the low-teens percent area to about $179 million, adjusted EBITDA margins in the mid-30% area, adjusted leverage declining to about 9x from well over 10x at transaction close, and low-to-mid-single-digit percent area free operating cash flow (FOCF) to debt,” the agency said.

Moody’s assigns to Storable B3, loans B2

Moody’s Investors Service said it assigned first-time ratings to Storable, Inc. with a B3 corporate family rating of B3 and a B3-PD probability of default rating.

Concurrently, Moody’s assigned a B2 rating to the senior secured first-lien credit facility, comprised of a $425 million term loan and an undrawn $35 million revolver. Moody’s gave a Caa2 rating to the issuer’s $150 million senior secured second-lien term loan.

Proceeds will be used to fund Storable’s acquisition by EQT Partners and Cove Hill Partners.

“Storable’s B3 corporate family rating reflects the company’s small size on a recurring revenue basis, elevated pro forma leverage levels of around 8x (Moody’s adjusted), and concentrated market focus as a provider of integrated technology and software solutions to property owners and managers in the self-storage commercial real estate sector,” the agency said in a press release.

The outlook is stable.

S&P gives Packers loans B-

S&P said it gave its B- issue-level and 3 recovery ratings to Packers Holdings LLC’s proposed $54 million revolving credit facility and $1.055 billion first-lien term loan. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in default.

Packers, rated B-, intends to use the term loan proceeds to refinance its $700 million first-lien term loan, $350 million non-fungible first-lien term loan and pay transaction expenses.

“The transaction is generally leverage neutral, but it extends the company’s weighted-average debt maturity to 6.5 from 4.1 years,” S&P said in a press release.

S&P ups Dynatrace

S&P said it upgraded Dynatrace Inc. and its first-lien debt to BB+ from BB-. The debt’s recovery rating remains 3.

“Dynatrace has significantly outperformed our revenue expectations while enhancing its operating efficiency, which along with a higher share of subscriptions revenue had increased trailing-12-months S&P Global Ratings’ EBITDA margin to 30% (as of Dec. 31, 2020),” S&P said in a press release.

The agency also noted Dynatrace repaid $120 million under its first-lien term loan, bringing its total outstanding balance to about $400 million.

The outlook is stable.

S&P cuts Form Technologies

S&P said it downgraded Form Technologies LLC to SD from CC and its second-lien debt to D from C.

“The downgrade follows Form Technologies completion of its recapitalization. We view the transaction as tantamount to a default on the second-lien term loan because the majority of lenders received a 3% discount to par value, which we view as less than the original promise. Per our criteria, we treat this as a selective default even though the investors accepted the offer voluntarily and no legal default occurred,” S&P said in a press release.

The agency noted Form’s first-lien lenders agreed to extend the maturities of its facilities to 2025 as part of the transaction, but S&P said they will receive sufficient offsetting compensation in the form of increased interest rates and a commitment fee.

Moody’s cuts Neustar to B3

Moody’s Investors Service said it lowered Neustar, Inc.’s corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD.

Concurrently, Moody’s downgraded the company’s senior secured first-lien bank facility to B2 from B1 and downgraded Neustar’s second-lien term loan to Caa2 from Caa1.

“The rating action principally reflects the ongoing deterioration in the issuer’s credit quality in recent quarters, driven primarily by a 3% year-over-year contraction in pro forma revenues (nine months through September 2020) and slower than anticipated cost savings realization, resulting in rising debt leverage and the persistence of free cash flow deficits which are unlikely to improve over the coming year,” Moody’s said in a press release.

The outlook remains negative.

Moody’s cuts Quimper facilities

Moody’s Investors Service said it downgraded Quimper AB’s (Ahlsell) ratings on its planned amended and upsized term loan and SEK 2.25 billion senior secured revolver to B2 from B1.

The company plans to reprice its term loan and to issue a €250 million senior secured first-lien term loan add-on.

Proceeds from the proposed SEK 2.5 billion equivalent issuance together with SEK 1.5 billion of balance sheet cash will be used to fully repay its SEK 3.9 billion senior secured second-lien term loan and cover any transaction-related fees and expenses.

“The transaction will lead to around 0.4x gross leverage reduction and to lower annual interest payment, which will support free cash flow (FCF) generation,” the agency said in a press release.

Moody’s said it aligned the first-lien term loan B and the RCF instrument ratings with the corporate family rating, because the envisaged transaction will remove the first-loss cushion provided by the second-lien term loan.

The agency also changed Quimper’s outlook to stable from negative and affirmed the B2 corporate family and B2-PD probability of default ratings.

In explaining the change in outlook, Moody’s cited Quimper’s improved operating performance, the expected reduction in debt and a forecast of a gradual improvement in operating performance over the next 12-18 months.

Fitch ups CenterPoint Energy Resources

Fitch Ratings said it upgraded CenterPoint Energy Resources Corp.’s issuer default rating to A- from BBB+. The agency also affirmed CenterPoint Energy, Inc.’s IDR at BBB and CenterPoint Energy Houston Electric, LLC’s IDR at BBB+.

“Fitch expects CERC’s FFO leverage to average below 4x in the next few years, more consistent with the A- rating level as a diversified and nearly fully regulated gas utility holding company. The leverage ratio assumes the sale of two gas distribution companies in Arkansas and Oklahoma,” the agency said in a press release.

The outlook for CERC is stable. Fitch revised the outlooks for CenterPoint Energy and CenterPoint Energy Houston Electric to stable from negative.

“The rating affirmation and stable outlook follow CNP’s support of the merger between Enable Midstream Partners, LP (Enable, BBB-/stable) and Energy Transfer LP (ET, BBB-/stable) in a unit-for-unit transaction. The transaction is valued at $7.3 billion. Upon closing, CNP will hold 6.5% of ET’s common units with no voting rights. Fitch believes that the transaction modestly improves CNP’s business risks due to ET’s significant size and diversity and paves the way for a future exit from the midstream sector,” the agency said.

Moody’s ups Century Communities

Moody’s Investors Service said it upgraded Century Communities, Inc.’s corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PD and the ratings on the company’s senior unsecured notes to B1 from B2.

The agency changed the outlook to positive from stable. Moody’s also upgraded Century’s speculative grade liquidity rating to SGL-2 from SGL-3.

“The ratings upgrade reflects Century’s increase in revenue scale, in excess of $3 billion in 2020, track record of geographic expansion through organic growth and acquisitions, reduction in adjusted debt to capitalization to close to 42% at Dec. 31, 2020, improving liquidity, including positive free cash flow, and Moody’s expectations of further strengthening of the company’s credit profile,” the agency said in a press release.

The positive outlook reflects an expectation of substantial top-line growth and further strengthening of Century’s key credit metrics over the next 12 to 18 months. “The company’s conservative financial strategies and a plan to operate with lower than historical levels of leverage also support the outlook,” Moody’s said.

S&P ups LKQ

S&P said it upgraded its ratings for LKQ Corp. and its secured and unsecured debt to BB+ from BB.

“The upgrade reflects LKQ’s declining leverage, strong free cash flow generation, and our expectation that it will focus on small to medium tuck-in acquisitions. Despite lower revenues because of the global pandemic, LKQ generated significant free cash flow of over $1 billion and reduced its debt by about $1.4 billion,” S&P said in a press release.

LKQ’s leverage is solidly below 3x, and S&P said it sees the company’s leverage staying in the 2x-3x area.

The outlook is stable.

Moody’s upgrades Plaskolite

Moody’s Investors Service said it upgraded Plaskolite PPC Intermediate II LLC’s corporate family rating to B2 from B3. Simultaneously, Moody’s raised Plaskolite’s first-lien term loan and revolving credit facility to B2 from B3 and probability of default rating to B2-PD from B3-PD. The agency changed the outlook to stable from positive.

“The rating upgrade reflects our expectation of Plaskolite’s continued earnings strength and free cash flow generation in the next 12 to 18 months, primarily driven by its large orders backlog, continued demand for thermoplastic safety sheets and pent-up demand from construction and industrial customers. We expect Plaskolite’s adjusted debt leverage will be in the range of mid to high five times, which positions the company in the B2 rating category,” Moody’s said in a press release.

The outlook reflects an expectation of a normalized business environment and that Plaskolite will keep its debt leverage below 6x in the next 12 to 18 months, the agency said.

S&P puts Hayward on positive watch

S&P said it placed its Hayward Industries Inc. ratings on CreditWatch with positive implications.

The placement follows Hayward’s parent Hayward Holdings, Inc. filing for an initial public offering.

“The company has not provided an estimate of expected proceeds, but we believe a portion will be used to repay borrowings under its credit facilities. The total amount outstanding as of Dec. 31, 2020, was $1.3 billion. Significant debt repayment could reduce leverage from estimated S&P Global Ratings-adjusted high-6x at the end of calendar year 2020,” S&P said in a press release.

The agency said it plans to resolve the CreditWatch when the IPO closes, and it knows how much of the proceeds will go to debt repayment, as well as Hayward’s future financial policy.

S&P puts Osum on positive watch

S&P said it placed all its ratings for Osum Production Corp., including the B rating on the $172 million first-lien term loan, and parent Osum Oil Sands Corp. on CreditWatch with positive implications.

The placement follows Waterous Energy Fund started a takeover bid for the 55% of Osum Oil Sands it doesn’t already own.

“The WEF acquisition would trigger a change-of-control provision under OPC’s rated term loan, requiring full repayment of the loan. As WEF’s takeover bid circular confirms its intent to fully repay the outstanding amount under OPC’s term loan, the anticipated repayment effectively eliminates the refinancing risk underpinning the negative outlook on our ratings,” S&P said in a press release.

Considering WEF’s plan to repay the loan, S&P said it plans to withdraw the ratings after the repayment.

S&P revises Balta view to positive

S&P said it revised LSF9 Balta Issuer SA’s outlook to positive from negative and affirmed the B+ ratings on the issuer, the secured notes and super senior revolver.

“We believe the successful senior notes exchange offer has addressed refinancing risks. Nearly 99% of noteholders have agreed to exchange their 2022 senior notes for new 2024 senior notes. Under the new capital structure, Balta will have no large debt maturities due until 2024, with the €61 million revolving credit facility (RCF) now due in June 2024 and the €235 million of senior notes maturing in December 2024,” S&P said in a press release.

S&P said it expects Balta credit metrics to improve over the next 12-18 months, but it remains cautious regarding its ability to generate a large FOCF cushion in 2021. The agency sees revenue growth of about 5% in 2021.

Moody’s alters Louisiana-Pacific view to positive

Moody’s Investors Service said it changed Louisiana-Pacific Corp.’s outlook to positive from stable and affirmed its Ba1 corporate family rating, Ba1-PD probability of default rating and Ba2 senior unsecured bond rating. The speculative grade liquidity rating remains unchanged at SGL-1.

“The positive outlook reflects LP’s strong credit metrics and the increasing proportion of cash flow from the more stable siding business versus the more volatile oriented strand board segment,” said Ed Sustar, a Moody’s senior vice president, in a press release.

Moody’s shifts GPS Hospitality view to stable

Moody’s Investors Service said it changed the outlook to stable from negative and affirmed the Caa1 corporate family rating and Caa1-PD probability of default rating of GPS Hospitality Holding Co. LLC. Also, Moody’s affirmed GPS’ Caa1 senior secured bank facility ratings.

“The affirmation and change in outlook to stable from negative reflect that we expect the gradual improvement in same-store sales to continue which will help drive higher earnings and result in lower leverage, improved coverage and stronger liquidity over time despite ongoing government restrictions,” stated Bill Fahy, a Moody’s senior credit officer, in a press release.

“However, the ratings and outlook also consider the company’s current high leverage and weak interest coverage with an inability to cover interest expense on an EBIT basis due in part to a material level of cash interest expense related to the company’s preferred stock,” Fahy added.

S&P turns KLDiscovery view to stable

S&P said it revised KLDiscovery Inc.’s outlook to stable from negative and withdrew all its ratings for the company.

The new unrated facility will consist of a $300 million term loan, a $50 million delayed draw term loan, and a $40 million revolving credit facility. The new facility’s maturity date is the earlier of five years after the closing date and six months before the maturity of the company’s 11% convertible debentures due 2024.

“We view the refinancing as a positive credit development because the company will have improved free cash flow and greater total available liquidity. In addition, KLDI demonstrated better-than-expected operating performance throughout the second half of 2020, and we expect pent-up demand for eDiscovery services will lead to a return to revenue growth for the company in 2021,” S&P said in a press release.

The withdrawal follows KLDiscovery refinancing its debt with a new unrated facility, the agency said.

S&P turns Tapestry view to stable

S&P said it revised Tapestry Inc.’s outlook to stable from negative and affirmed all its ratings, including the BBB- senior unsecured rating.

“Tapestry’s better-than-expected performance during the Covid-19 pandemic provides us with greater confidence in its ability to maintain credit measures commensurate with the rating. Across all three brands, Tapestry’s sales in the second quarter continued their sequential improvement over previous quarters, especially in ‘Greater’ China where Tapestry has a mid-teen percent exposure. In addition, the company’s profitability to date exceeded our expectations thanks to the higher penetration of the digital business, lower stock-keeping unit (SKU) counts, improved average unit retail (AUR), and lower promotional activity,” S&P said in a press release.

S&P noted Tapestry’s leverage declined to about 2.5x as of Dec. 26 from 3.3x as of September.

“The stable outlook reflects Tapestry’s enhanced profitability profile and our expectation for a return to positive sales in the second half of the fiscal year. We expect credit metrics to remain solid, with an adjusted debt-to-EBITDA ratio in the mid-2x area over the next two years,” the agency said.

Moody’s assigns Berry loan Ba2

Moody’s Investors Service said it gave a Ba2 rating to Berry Global Inc.’s proposed senior secured first-lien term loan due 2026.

Berry’s other ratings, including the Ba3 corporate family rating and Ba3-PD probability of default rating are unchanged. The outlook remains stable. Berry’s SGL-2 speculative grade liquidity rating is also unchanged.

The Ba2 rating, one notch above the Ba3 CFR, reflects the instruments’ subordination to the asset-based revolver for the most liquid assets (accounts receivable and inventory) and the benefit of the loss absorption provided by a considerable amount of second-lien debt, Moody’s said.

The proceeds will be used to repay the senior secured first-lien term loan due 2026 at par and pay fees and expenses.

“Moody’s considers the transaction credit neutral. The rating on the existing term loan will be withdrawn at the close of the transaction,” the agency said in a press release.

Moody’s rates Coeur notes B3

Moody’s said it rated Coeur Mining, Inc.’s new $350 million senior unsecured notes due 2029 B3. The agency also upgraded Coeur’s corporate family and probability of default of ratings to B2 and B2-PD from B3 and B3-PD. The speculative grade liquidity rating remains SGL-3

“The upgrade factors in a substantial improvement in the company’s credit metrics and liquidity position, which were driven largely by debt reduction, higher gold and silver prices and improved cash flow over the last 18 months. The upgrade also assumes that Coeur will complete the Rochester expansion as planned and that the company will realize the expected benefits of the project, including lower operating costs, after the ramp-up to commercial production,” Moody’s said in a press release.

Coeur will use the proceeds to refinance its notes due 2024, pay related fees and expenses and general corporate purposes.

The outlook is stable.

Moody’s assigns Garrett Motion Ba3

Moody’s Investors Service said it assigned a Ba3 corporate family rating and Ba3-PD probability of default rating to Garrett Motion Inc.

The agency also gave a Ba2 rating to the senior secured bank credit facilities expected to be entered into by Garrett’s wholly owned subsidiaries Garrett Motion Sarl and Garrett LX I Sarl with Garrett Motion Holdings, Inc. being a co-borrower.

Moody’s said it expects Garrett to secure a $1.25 billion seven-year guaranteed senior secured term loan and a $300 million guaranteed senior secured revolving credit facility.

“The Ba3 rating reflects the strength of Garrett’s underlying operating business and a successful balance sheet restructuring, which will allow the company to emerge from Chapter 11 in the second quarter of 2021,” said Matthias Heck, a Moody’s vice president, senior credit officer and lead analyst for Garrett in a press release. “

The outlook is stable. “The stable outlook reflects the expectation of a continued recovery in global light vehicle sales in 2021, leading to positive FCF generation and continued debt reduction,” added Heck.

S&P rates Go Daddy notes BB-

S&P said it assigned its BB- issue-level and 5 recovery ratings to Go Daddy Operating Co. LLC’s planned $800 million of senior unsecured notes due 2029. The recovery rating indicates an expectation for modest (10%-30%; rounded estimate: 10%) recovery in default.

S&P said it expects GoDaddy to assess merger and acquisition opportunities and potentially use a portion of the proceeds for funding over the near term.

All other ratings, including Go Daddy’s BB issuer credit rating, are unchanged. Pro forma leverage will be unchanged at 3.6x as of Dec. 31, S&P said it estimates.

Moody’s assigns GoDaddy notes Ba3

Moody’s Investors Service said it assigned Go Daddy Operating Co., LLC’s planned senior unsecured notes a Ba3 rating.

Moody’s also affirmed its Ba2 corporate family rating, Ba2-PD probability of default rating and Ba1 senior secured rating and upgraded the senior unsecured rating to Ba3 from B1. The speculative grade liquidity (“SGL”) rating is unchanged at SGL-1.

“The material increase in financial leverage makes Go Daddy’s note offering a negative credit development, but the company will remain within its publicly-stated financial leverage guidance range and the rating already incorporated our expectation that incremental debt proceeds could be used to fund acquisitions and investments, leading to the affirmation of the Ba2 CFR,” said Oleg Markin, a Moody’s assistant vice president, in a press release. “The upgrade of the senior unsecured rating to Ba3 from B1 reflects the increased proportion of unsecured debt relative to total debt following the issuance of the proposed notes.”

The outlook remains stable.

Fitch rates Hudbay notes B+

Fitch Ratings said it assigned a B+/RR4 rating to Hudbay Minerals Inc.’s new $600 million senior unsecured notes due 2026.

“The ratings reflect Hudbay Minerals Inc.’s modest size, concentration in four mines and extensive track record of operating copper mines from exploration to production. The ratings consider Hudbay’s low-cost position at Lalor; average cost position and long mine life at Constancia; and modest mine lives in Manitoba, Canada. Hudbay’s mines are in low-risk jurisdictions and leverage is in line with the ratings,” Fitch said in a press release.

The proceeds will be used to refinance Hudbay’s $600 million senior unsecured notes due 2025 and for general corporate purposes.

S&P rates Kodiak, loan B-

S&P said it assigned B- ratings to Kodiak Building Partners Inc. and its planned $540 million term loan due 2028. The loan’s recovery rating is 3. Kodiak is also seeking to increase its unrated asset-based lending facility to $200 million from $120 million.

The company will use the proceeds to refinance its debt, pay a $175 million dividend to its owners and pay related fees and expenses. Pro forma, S&P said it sees Kodiak’s leverage in the 4x-4.5x neighborhood.

“We expect increased demand for residential construction in 2021, which is a key end market for Kodiak. Kodiak generates about 80%-85% of its revenues from residential construction, which is benefiting from significant growth, especially for single-family dwellings, which account for 60% of its residential sales. In 2020, we expect organic revenue growth of 6%-7% due to higher new residential construction with 1.34 million starts up from 1.3 million in 2019,’ the agency said in a press release.

The agency assigned a positive outlook.

S&P rates Nextpharma, loan B

S&P said it assigned B ratings to Nextpharma Topco GmbH (Bowtie German Bidco GmbH) and its planned €290 million term loan.

“Over the last three years, the company delivered organic growth of about 7% on average, supported by margin expansion. We project revenue will reach at least €350 million by 2022, reflecting the integration of the Lonza sites and new contract wins, with the company’s S&P Global Ratings-adjusted EBITDA margin expanding to 18% in 2022 from 15% in 2020,” S&P said in a press release.

Last month, Nextpharma agreed to buy two contract manufacturing facilities from Lonza Group, using a €290 million proposed term loan, alongside a significant equity injection from the financial sponsor Capvest. Concurrently, the debt issuance will finance the fund-to-fund transfer and refinance debt.

The outlook is stable. The agency said it forecasts S&P Global Ratings-adjusted debt to EBITDA will remain in the 5x-6x range over the next 18-24 months.

S&P assigns Plantronics notes B

S&P said it assigned Plantronics Inc.’s planned $500 million of senior unsecured notes a B rating.

Plantronics will use the proceeds to repay Plantronics about $480 million of notes.

S&P also affirmed the B+ ratings on the company and its senior secured credit facilities but changed the outlook to stable from negative.

The outlook reflects an expectation Plantronics will experience at least mid-single-digit-percent revenue growth in fiscal 2022 and maintain EBITDA margins in the mid-teen-percent area, driven by demand tailwinds for video and headset products, S&P said.

“In addition to lower restructuring costs and term loan prepayments, we expect this to result in leverage decreasing toward the 5x area and FOCF to debt increasing to about 10% in fiscal 2022,” the agency said.

Fitch rates Spirit Realty notes BBB

Fitch Ratings said it assigned a BBB rating to Spirit Realty, LP’s senior unsecured notes due 2028 and 2032. The rating is the same as the Spirit’s issuer default rating.

Fitch expects Spirit to use the proceeds to fund property acquisitions, refinance upcoming debt maturities, or general corporate purposes.

The outlook is stable.

S&P rates Thiess, notes BBB-

S&P said it gave Thiess Group Holdings Pty Ltd. and its planned U.S. dollar-denominated senior secured notes BBB- ratings. The notes will be offered through subsidiaries Thiess Group Finance Pty Ltd. and Thiess Group Finance USA Pty Ltd. the parent will guarantee the notes.

Thiess is a newly formed joint venture between Cimic and Elliott Investment Management, LP. Cimic and Elliott have joint control and equal representation on Thiess’ board.

“We expect Thiess’ ratio of adjusted debt to EBITDA to be in the mid-to-high 3x range (including all preference shares as debt) in the next two years. In our view, the company’s capital expenditure is likely to be between A$400 million and A$500 million in 2021 and 2022. Thiess targets a ratio of net debt to EBITDA of less than 2x (excluding preference shares as debt),” S&P said in a press release.

Thiess seeks to refinance its A$1.61 billion bridge facility with two proposed senior secured 144A/Reg. S notes due 2028 and 2029, respectively. The company also has a A$400 million senior secured revolving credit facility that will rank equally with the notes.

Fitch assigns Thiess, notes BBB-

Fitch Ratings said it assigned BBB- ratings to Thiess Group Holdings Pty Ltd. and its planned U.S. dollar-denominated senior secured notes.

The proposed notes will be issued by Thiess’ wholly owned subsidiaries, Thiess Group Finance Pty Ltd. and Thiess Group Finance USA Pty Ltd., and will be guaranteed by the parent and certain subsidiaries.

The notes are rated at the same level as Thiess as they will be the direct, unconditional, secured and unsubordinated obligations of Thiess and its subsidiaries, representing 89% of the group’s total assets and 94% of EBITDA, the agency said.

Fitch assigned a stable outlook, reflecting an expectation Thiess will maintain a steady leverage position together with the company’s commitment to a conservative financial profile. “We forecast funds from operation (FFO) net leverage to improve to 1.5x in the financial year ending June 2023 (FY23), from 2x in FY20,” the agency said in a press release.

Moody’s assigns TriNet Group Ba2

Moody’s Investors Service said it assigned new ratings to TriNet Group, Inc. with a corporate family rating of Ba2, a probability of default rating of Ba2-PD and a SGL-1 speculative grade liquidity rating.

Concurrently, Moody’s gave a Ba3 rating to TriNet’s new senior unsecured notes that will be used to add cash to its balance sheet and repay $370 million in subsidiary TriNet USA, Inc.’s term loan debt.

TriNet USA will also obtain a new, unrated $500 million secured revolving credit facility, replacing its bank facility.

Moody’s will withdraw all of TriNet USA’s ratings upon completing the refinancing transaction.

The outlook is stable.

S&P rates Wellsky loans B

S&P said it assigned its B issue-level rating and 2 recovery rating to Project Ruby Parent Corp.’s (Wellsky) proposed $110 million first-lien revolving credit facility due 2026 and $1.125 billion first-lien term loan due 2028. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 70%) recovery in default.

The company also plans to obtain a new $405 million second-lien term loan due 2029. This debt will be unrated. The debt will be issued by Project Ruby’s subsidiary, Project Ruby Ultimate Parent.

Wellsky’s B- issuer credit rating remains unchanged.

S&P gives Bass Pro loan B+

S&P said it gave its B+ issue-level and 3 recovery ratings to outdoor retailer Bass Pro Group LLC’s (or Great American Outdoor Group LLC) proposed $4.1 billion senior secured term loan due 2028. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in default.

Bass Pro intends to refinance its term loan facility in a one-for-one transaction to extend the facility’s maturity and lower overall interest costs.

Bass Pro also intends to refinance its undrawn, unrated asset-backed lending facility, extending the maturity to 2026 and increasing overall availability by $300 million to more than $1.5 billion.

“The increase in the priority debt in the capital structure results in a 55% rounded estimated recovery on the term loan facility, down from a 60% rounded estimate in prior analyses. In our simulated default scenario, we still assume Bass Pro would experience lower consumer discretionary spending in a volatile economy and that increased competition would hurt operating performance,” S&P said in a press release.

“We expect the acquisition, when it closes later this year, will be largely leverage neutral to modestly deleveraging on a S&P Global Ratings-adjusted basis,” the agency said.

S&P gives Coeur Mining notes B

S&P said it gave Coeur Mining Inc.’s planned $350 million of senior unsecured notes due 2029 B issue-level and 3 recovery ratings. The BB- issue-level rating on its $300 million revolving credit facility is unchanged.

Coeur will use the proceeds to repay its $230 million of senior unsecured notes due 2024, pay related fees and add $102 million of cash to its balance sheet for general corporate purposes.

S&P said it now forecasts Coeur’s debt to EBITDA will rise to the 2.5x-3x range in 2021, which compares with 1.8x in 2020.

The agency said it affirmed Coeur’s B issuer rating and the stable outlook.

Moody’s eyes Hayward for upgrade

Moody’s Investors Service said it placed Hayward Industries, Inc.’s ratings on review for upgrade, including the B3 corporate family rating, the B3-PD probability of default rating, the B3 senior secured first-lien rating and Caa2 senior secured second-lien rating.

The review follows Hayward Holdings, Inc., parent company of Hayward, announcement it filed for a proposed initial public offering of shares of its common stock that Moody’s said it views as credit positive because the company plans to use proceeds to repay debt.

“The rating review will focus on Hayward’s financial leverage following the initial public offering transaction, financial policies as a public company, debt mix and operating strategy. The planned IPO’s ultimate impact on Hayward’s financial profile remains uncertain and will depend on the proceeds of the planned equity offering and the allocation of proceeds,” Moody’s said in a press release.

Moody’s gives Hudbay Mineral notes B3

Moody’s Investors Service said it assigned a B3 rating to Hudbay Minerals Inc.’s planned $600 million of senior unsecured notes due 2026.

Moody’s senior unsecured rating for Hudbay is B3.

Proceeds will be used to refinance Hudbay’s $600 million of 7 5/8% senior unsecured notes due 2025.

The outlook is stable.

S&P pares Pronovias

S&P said it Pronovias (CatLuxe Sarl) said it downgraded Pronovias’ issuer rating to SD from CCC+.

“The downgrade follows Pronovias’ communication through its 2021 budget that it converted interest payments due on its €72 million second-lien term loan to payment-in-kind (PIK) interest from cash interest,” the agency said in a press release.

“We consider this modification a selective default, since in our view the second-lien lender is receiving less favorable terms than originally promised under the security, because the amendment will delay the timing of the interest payments to the maturity of the second-lien loan in 2025,” S&P said.

The said it plans to revisit the issuer rating within the next few days.

Moody’s gives Spin Holdco facility B3

Moody’s Investors Service said it assigned Spin Holdco, Inc.’s planned senior secured credit facility a B3 rating. The agency also affirmed the B3corporate family rating and B3-PD probability of default rating.

“The B3 rating on the new credit facility is the same as the CFR, reflecting the fact that the revolving credit facility and term loan will be the preponderance of debt in the capital structure. By refinancing the capital structure with all first-lien term debt, loss absorption provided by the existing second lien term debt will be eliminated,” Moody’s said in a press release.

Proceeds will be used to refinance Spin’s entire capital structure, including $1.785 billion of first-lien and $185 million of second-lien term debt. The ratings on these loans will be withdrawn at closing. After this transaction, Spin’s next maturity will be 2026.

The outlook is stable.

Moody’s gives Theiss, notes Ba1

Moody’s Investors Service said it gave a Ba1 corporate family rating to Thiess Group Holdings Pty Ltd. Simultaneously, Moody’s assigned a Ba1 rating to the backed senior secured notes issued by Thiess Group Finance Pty Ltd. and Thiess Group Finance USA Pty Ltd.

“The Ba1 rating reflects Thiess’ market-leading position as one of the world’s largest, full-service mining services providers,” said Saranga Ranasinghe, a Moody’s vice president and senior analyst, in a press release.

The rating also reflects the financial policy in place, including operating below 2x on a net debt/EBITDA basis. Moody’s said it forecasts Thiess will have enough headroom below this threshold under its base-case assumptions over the next 12-18 months.

The outlook is stable. The outlook reflects an expectation Thiess will continue to renew its contracts, win new contracts and operate within the parameters set for the rating, Moody’s said.

S&P gives TriNet loan BBB-, notes BB

S&P said it assigned its BBB- issue-level rating and 1 recovery rating to TriNet Group Inc.’s proposed $500 million secured revolving credit facility due 2026. The 1 recovery rating indicates an expectation for very high (90%-100%; rounded estimate: 95%) recovery in default.

“At the same time, we assigned our BB issue-level rating and 3 recovery rating to the company’s proposed $500 million senior unsecured notes due 2029. The 3 recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default,” S&P said in a press release.

TriNet will use the notes’ proceeds to repay its $370 million term loan A due 2023 and add cash to its balance sheet.

“Our BB issuer credit rating and stable outlook on TriNet are unchanged,” S&P said.

S&P cuts Atmos

S&P said it lowered its ratings on Atmos Energy Corp. and its senior unsecured debt to A- from A.

On Friday, Atmos released an 8-K saying it expects incremental gas costs in the $2.5 billion-$3.5 billion range stemming from extreme winter weather in various service territories, including Texas, and extraordinarily higher prices for natural gas to meet a spike in demand.

“As a result, S&P Global Ratings expects Atmos’ financial measures to materially weaken, reflecting funds from operations (FFO) to debt of about 15%-17% through 2023. Previously, we expected FFO to debt in the 22%-23% range through 2023,” the agency said in a press release.

S&P also placed the company’s issuer and senior unsecured debt ratings on CreditWatch with negative implications. The agency said it plans to resolve the CreditWatch within the next 90 days after its secured funding for the added gas costs.

Fitch raises Vulcan Materials

Fitch Ratings said it raised the ratings of Vulcan Materials Co.’s, including the company’s long-term issuer default rating to BBB from BBB-.

“The upgrade to BBB reflects the company’s improving financial and credit metrics, including Fitch’s expectation that total debt to operating EBITDA will settle at the low end of management’s target of 2x-2.5x and Fitch’s expectation that Vulcan will maintain these credit metrics through the cycle,” the agency said in a press release.

Vulcan performed significantly better than Fitch’s base case forecast at the beginning of the pandemic and has met Fitch’s positive rating sensitivities for the BBB IDR, the agency said.

The outlook is stable.

S&P revises CenterPoint view to stable

S&P said it revised CenterPoint Energy Inc.’s outlook to stable from negative and affirmed its BBB+ issuer credit rating.

Concurrently, S&P affirmed and changed the outlooks to stable from negative for CenterPoint Energy Houston Electric LLC, CenterPoint Energy Resources Corp., Vectren Corp., Vectren Utility Holdings Inc., Southern Indiana Gas & Electric Co. and Indiana Gas Co. Inc.

The changes in outlook and affirmations follow CenterPoint Energy’s support for the merger between Enable Midstream Partners LP and Energy Transfer LP. Upon completion, CPE will receive about 6.5% ownership of ET common units for its 53.7% ownership of Enable common units. In addition, CPE will exchange the $363 million holding of Enable series A non-cumulative preferred shares for about $385 million of ET series G fixed-rate reset cumulative redeemable perpetual preferred units.

“The stable outlook reflects our expectation of consistent financial measures following the Enable sale to ET,” S&P said in a press release.

S&P turns Intercontinental view to stable

S&P said it revised its outlook on Intercontinental Exchange Inc. (ICE) to stable from negative.

“The outlook revision reflects faster improvement in ICE’s leverage metrics compared with what we initially anticipated during the Ellie Mae acquisition, through solid cash flow generation, reflecting strength across its businesses,” S&P said in a press release.

ICE cuts its S&P Global Ratings adjusted debt to $16.7 billion as of Dec. 31 from $17.5 billion as of Sept. 30, following Ellie Mae’s acquisition, as the company paid down a $750 million term loan issued as part of the acquisition financing, S&P noted.

The agency also affirmed the BBB+ ratings on the company and its senior unsecured debt.

Fitch shifts Martin Marietta view to stable

Fitch Ratings said it revised Martin Marietta Materials, Inc.’s outlook to stable from negative and affirmed the BBB ratings on the company and its senior unsecured notes.

The outlook revision reflects Martin Marietta’s strong performance during the coronavirus pandemic. Fitch said it revised the outlook to negative in May based on forecasted revenue and EBITDA declines that led to forecasted total debt to operating EBITDA exceeding 3x by YE2020, meaningfully above Fitch’s negative rating sensitivity of 2.5x.

“The return to a stable outlook reflects the company’s robust liquidity position and Fitch’s expectations that total debt to operating EBITDA will remain at or below 2.5x in the intermediate term and that end-market demand will remain relatively stable,” Fitch said in a press release.

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