Enerflex Ltd.'s $625 Million Senior Secured Notes Assigned 'BB-' Rating

NEW YORK (S&P Global Ratings) Oct. 4, 2022--S&P Global Ratings today assigned its 'BB-' issue-level rating and '3' recovery rating to Calgary, Alberta-based, Enerflex Ltd.'s $625 million senior secured notes due 2027. The company will place the gross proceeds from the sale of the notes in escrow and the noteholders will have a security interest in the escrow account and the escrowed funds to secure the obligations under the notes pending completion of the merger with Exterran Corp., expected to occur in the fourth quarter 2022. Enerflex intends to use the net proceeds from the notes, together with a $150 million secured term loan (not rated), cash on hand and borrowings under its $700 million revolving credit facility, to refinance

...- Gross recovery value: $1.1 billion Simplified waterfall: - Net enterprise value (after 5% administrative costs): $1.03 billion - Secured first-lien debt claims (including interest): $650 million - Total value available to unsecured claims: $380 million - Senior unsecured debt claims (including interest): $660 million - --Recovery expectations: 50%-70% (rounded estimate: 55%) All debt includes six months of pre-petition interest....

Ratings Action