S&P rates IESI loans BBB-

Standard & Poor's said it assigned a BBB- rating and recovery rating of 2 to IESI Corp.'s proposed amended and restated credit facilities in the amount of $950 million, comprising a $400 million term loan and $550 million revolving credit facilities. The recovery rating of 2 indicates an expectation of 70% to 90% recovery in a default scenario.

Under the terms of proposed amendments, IESI will extend the maturity of its senior secured term loan B to 2016 from 2012, increase the amount drawn to $400 million from $195 million, extend the maturity of its senior secured revolving credit facility to 2014 and alter its amount to $550 million.

Although the refinancing will result in increased debt levels, S&P said it believes the incremental EBITDA and newly generated cash flow will offset this.

The company's financial risk profile will remain within expectations for the rating, the agency 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.