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
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Research type: News
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Preferred Sands Holding Co. LLC,Preferred Resin Holding Co. LLC