S&P rates ProFrac B, loan BB-

S&P said it gave a B issuer rating to ProFrac Holdings LLC and a BB- rating to the $450 million term loan borrowed by its wholly owned subsidiary ProFrac Holdings II. The loan’s recovery rating is 1. The outlook is stable.

Concurrently, S&P raised the issuer credit and senior secured ratings on subsidiary ProFrac Services LLC to B from CCC+ and removed them from CreditWatch positive, where they were placed on Oct 27. The agency subsequently withdrew the ratings, because the company's term loan was repaid in full with the proceeds of the new term loan.

ProFrac completed its acquisition of FTS International. “Pro forma for the FTS acquisition, ProFrac's active fleets will nearly double to about 30, about half of which have dual-fuel capability. We expect that its scale will increase further through upgrades and reactivations of inactive rigs as well as construction of electric frack (efrac) fleets. In addition, the acquisition of FTS improves ProFrac's geographic diversity, adding the Eagle Ford, Mid-Continent and Rockies areas to its markets and doubling its presence in the Permian Basin to 12 fleets,” S&P said in a press release.

S&P said it estimates ProFrac’s debt to EBITDA should be about 2x in 2022 and 1.5x in 2023.

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