Research Update: S&PCORRECT: Preferred Proppants LLC Assigned 'B+' Rating After Debt Reorganization; The Outlook Is Stable Jan 12
- Language: English
- Published: January 2012
U.S. frac sand producer Preferred Sands Holding Co. LLC and Preferred Resin Holding Co. LLC (collectively referred to as Preferred Sands) plans to issue $430 million in bank debt and use proceeds to acquire a northern white sands producer, repay existing debt, and buy out some limited partners. We have assigned our preliminary 'B+' corporate credit rating to both entities, reflecting our view of a fair business risk profile and an aggressive financial risk profile once the proposed transaction closes as contemplated. We have also assigned a preliminary 'BB-' issue-level rating and a preliminary '2' recovery rating to the proposed $430 million senior secured credit facilities. The stable rating outlook reflects our view that operating performance will continue to improve...
Companies mentioned in this report are: Preferred Sands Holding Co. LLC,Preferred Resin Holding Co. LLC
Action: New Rating
Action: Outlook: Stable
Action: Preliminary Rating
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
Preferred Sands Holding Co. LLC,Preferred Resin Holding Co. LLC