LaserShip Inc. Outlook Revised To Stable From Negative On Improved Liquidity, Ratings Affirmed

LaserShip Inc.'s (doing business as OnTrac) recent issuance of a $125 million add-on to its first-lien term loan, which it will use to repay the $104 million outstanding balance on its revolving credit facility, has improved its liquidity position. Therefore, we revised our outlook on the company to stable from negative and affirmed our 'CCC+' issuer credit rating. At the same time, we affirmed our 'CCC+' issue-level rating on OnTrac's senior secured first-lien debt and our 'CCC-' issue-level rating on its senior secured second-lien debt. The stable outlook reflects our view that the increased availability under its revolving credit facility will be sufficient to cover its modest near-term cash flow deficits. Despite the softer macroeconomic environment and higher interest rates,

...October 18, 2023 - LaserShip Inc.'s (doing business as OnTrac) recent issuance of a $125 million add-on to its first-lien term loan, which it will use to repay the $104 million outstanding balance on its revolving credit facility, has improved its liquidity position. - Therefore, we revised our outlook on the company to stable from negative and affirmed our '###+' issuer credit rating. - At the same time, we affirmed our '###+' issue-level rating on OnTrac's senior secured first-lien debt and our '###-' issue-level rating on its senior secured second-lien debt. - The stable outlook reflects our view that the increased availability under its revolving credit facility will be sufficient to cover its modest near-term cash flow deficits. Despite the softer macroeconomic environment and higher interest rates, we expect OnTrac will gradually improve its cash flow supported by rising volumes. TORONTO (S&P Global Ratings) Oct. 18, 2023--S&P Global Ratings today took the rating actions listed above....

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