Bulletin: Tosca Services LLC's Proposed Repricing Of First-Lien Term Loan Is Credit Neutral

CENTENNIAL (S&P Global Ratings) Feb. 5, 2021--S&P Global Ratings today said Tosca Services LLC's (B/Stable/--) proposed repricing of its $526.5 million first-lien term loan will enable the company to reduce its cash interest expense and leverage in 2021, but will not affect the ratings. The goal of the repricing transaction is to reduce the overall interest expense through a reduction in margin and/or LIBOR floor. Other than the proposed pricing change, and the six-month extension of the soft call option from closing, we do not expect other changes to the facility terms. As a result, our 'B' rating on the first-lien term loan is unchanged. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in

...February 5, 2021 CENTENNIAL (S&P Global Ratings) Feb. 5, 2021--S&P Global Ratings today said Tosca Services LLC's (B/Stable/--) proposed repricing of its $526.5 million first-lien term loan will enable the company to reduce its cash interest expense and leverage in 2021, but will not affect the ratings. The goal of the repricing transaction is to reduce the overall interest expense through a reduction in margin and/or LIBOR floor. Other than the proposed pricing change, and the six-month extension of the soft call option from closing, we do not expect other changes to the facility terms. As a result, our 'B' rating on the first-lien term loan is unchanged. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in a hypothetical default scenario. Our 'B' issuer credit rating and stable outlook on Tosca Services reflect our expectation for favorable end-market conditions, driven by a healthy demand for food and beverage products sold in...

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