Fitch cuts Medallion loan to BB-

Fitch Ratings said it downgraded Medallion Midland Acquisition, LP's senior secured term loan B to BB-/RR3 from BB/RR2 following the incremental term loan B offering. Medallion's long-term issuer default rating is affirmed at B+.

“This was driven by the lower recovery percentage of term loan B as a result of the increase in senior secured debt balance,” Fitch said in a press release. Additionally, the incremental debt will boost Medallion’s term loan debt to $872 million and the FY 2023 leverage to about 4.4x by Dec. 31 above the agency’s prior forecast and the company’s 4x net leverage target.

Medallion will use the incremental loan, currently expected to be $50 million, to pay a distribution to the equity holder Global Infrastructure Partners.

The outlook is stable.

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