S&P: Peacock loans B+, CCC+

Standard & Poor’s said it assigned a B corporate credit rating to Peacock Holding Co.

The agency also said it assigned a B+ rating to the company’s $35 million revolving credit facility due 2020 and $285 million first-lien term loan due 2022. Its 2 recovery rating indicates 70% to 90% expected default recovery.

S&P also said it assigned a CCC+ rating to the company’s proposed $55 million second-lien facility due 2023. Its 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is stable.

Peacock Holding is the parent company of Peacock Engineering Co. LLC, which is the borrower of the proposed senior secured and second-lien facilities, the agency said.

The ratings reflect the company’s substantial debt obligations, financial sponsor ownership, meaningful customer concentration and narrow business focus, S&P said.

The proceeds will be used to fund the purchase of L&L Foods and refinance the company’s existing debt outstanding, provide cash to the company and pay fees and expenses, the agency said.

At the close of the transaction, S&P said it estimates that Peacock will have $591 million of adjusted debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.