Forward Air Corp's $925 Million Senior Secured Notes Assigned 'BB-' Rating (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) Sept. 22, 2023--S&P Global Ratings today assigned its 'BB-' issue-level rating and '3' recovery rating to U.S.-based freight services provider Forward Air Corp.'s proposed $925 million senior secured notes due 2031. The '3' recovery rating indicates our expectation for substantial (50%-70%; rounded estimate: 60%) recovery in our simulated default scenario. The notes will rank pari passu to the company's proposed $925 million term loan B due 2030 (see our research update published Sept. 11, 2023, on RatingsDirect) and proposed $400 million revolving credit facility (undrawn) due 2028. The additional debt proceeds will be used to partially fund the acquisition of Omni Logistics LLC which we expect to close before the end of 2023. All of

...September 22, 2023 NEW YORK (S&P Global Ratings) Sept. 22, 2023--S&P Global Ratings today assigned its '##-' issue-level rating and '3' recovery rating to U.S.-based freight services provider Forward Air Corp.'s proposed $925 million senior secured notes due 2031. The '3' recovery rating indicates our expectation for substantial (50%-70%; rounded estimate: 60%) recovery in our simulated default scenario. The notes will rank pari passu to the company's proposed $925 million term loan B due 2030 (see our research update published Sept. 11, 2023, on RatingsDirect) and proposed $400 million revolving credit facility (undrawn) due 2028. The additional debt proceeds will be used to partially fund the acquisition of Omni Logistics LLC which we expect to close before the end of 2023. All of our other ratings on Forward are unchanged as we view the transaction as leverage neutral. ISSUE RATINGS ¡ RECOVERY ANALYSIS Key analytical factors - We assigned a '##-' issue-level rating to the company's proposed...

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