S&P rates Rosen, loan B

S&P said it assigned preliminary B ratings to PG Investment Co. 59 Sarl (Rosen) and its planned $1.15 billion term loan. The recovery rating on the loan is 3. The issuer will also get a $300 million revolver, which is expected to be undrawn at close. The outlook is positive.

Private equity firm Partners Group established PG Investment to buy Rosen Group, an oil and gas service company.

“Since 2018, Rosen has reported an S&P Global Ratings-adjusted EBITDA (this includes about $45 million R&D costs per year) in the range of $108 million-$145 million, with a step-up in 2023 toward $218 million. We expect that the company will increase its profitability over the next years, reaching above a 30% adjusted EBITDA margin. The main growth drivers include an aging global pipeline estate with higher inspection needs, more stringent regulations, and an undersupply of high-tech diagnostic solutions,” S&P said in a statement.

The positive outlook reflects a one-in-three chance Rosen could execute its growth strategy faster than expected and beat the agency’s base case over the rating horizon, S&P said.

© 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.