...July 8, 2024 TORONTO (S&P Global Ratings) July 8, 2024--S&P Global Ratings today assigned its '##-' issue-level rating and '2' recovery rating to High Liner Foods Inc.'s proposed US$240 million term loan B. The '2' recovery rating indicates our expectation of meaningful (70-90%; rounded estimate: 80%) recovery in a simulated default scenario. The refinanced term loan maturing in 2031 will have the same security interest as the existing senior secured term loan. Our 'B+' issuer credit rating and stable outlook on High Liner Foods are unchanged. Along with cash on hand, the company will use the proceeds from this issuance to refinance the existing term loam B due 2026 and pay transaction related fees and expenses. We expect High Liner's pro forma debt to EBITDA ratio on S&P Global Ratings-adjusted basis will remain in the 2.75x-3.00x range while it maintains free operating cash flow (FOCF) to debt of more than 10% over the next 12 months. We expect the company's leverage will remain at this...
