S&P pumps up ProFrac, rates notes BB-

S&P said it raised ProFrac Holdings LLC’s issuer rating to B from B- and assigned BB- issue-level and 1 recovery ratings (rounded estimate: 95%) to its new $520 million of senior secured notes. The agency also removed ProFrac’s ratings from CreditWatch with developing implications for where they were placed on Dec. 19.

In addition to the privately sold $520 million of notes, the company also secured an unrated $365 million term loan, which it used in a refinancing. ProFrac subsidiary PF Proppant Holding LLC borrowed the loan.

“ProFrac refinanced its $808 million term loan that was due in March 2025. As a result, it no longer faces the risk of a payment acceleration of the asset-based lending (ABL) revolving credit facility to Dec. 2024. Furthermore, we now expect weighted-average maturity will be at least 4.5 years. Therefore, we raised our issuer credit rating back to B,” S&P said in a press release.

The agency noted ProFrac announced it is considering options for PF Proppant, which include a sale, merger, recapitalization or public offering.

The outlook is stable.

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