Fitch rates Savage B+, loan BB-

Fitch Ratings said it assigned Savage Enterprises, LLC and Savage Cos. first-time long-term issuer default ratings of B+ with a stable outlook. Fitch has also assigned Savage Enterprises' $650 million revolving asset-based loan BB+/RR1 ratings and the $1.2 billion first-lien term loan BB-/RR3 ratings.

“Savage's ratings reflect its operations in high-cost-of-failure niche infrastructure markets and strategically located agribusiness assets that benefit from its logistical expertise. Commodity price exposure is mitigated by a hedging strategy that ensures profit per unit. Consistent with the B+ rating, Fitch expects EBITDA interest coverage in the mid-3x, leverage in the high-3x, and that post-completion free cash flow (FCF) turns positive in 2025,” the agency said in a press release.

To fund the Texon acquisition, Savage will use a $275 million incremental term loan.

© 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.