Research Update: Covia Holdings LLC Assigned 'B-' Issuer Credit Rating, Outlook Positive; $806 Million Term Loan Rated 'B-'

U.S.-based industrial minerals and fracking (frac) sand producer Covia Holdings LLC emerged from bankruptcy on Dec. 31, 2020. As part of the restructuring, the company cut its debt roughly in half, eliminated close to $300 million in leases, and adjusted its mix to focus on its more stable industrial segment. We are assigning our 'B-' issuer credit rating to Covia. The outlook is positive. At the same time, we are assigning our 'B-' issue-level rating and '3' recovery rating to the company's new $806 million senior secured term loan due 2026. The '3' recovery rating reflects our expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of default. The positive outlook reflects that we could raise our rating

...- U.S.-based industrial minerals and fracking (frac) sand producer Covia Holdings LLC emerged from bankruptcy on Dec. 31, 2020. - As part of the restructuring, the company cut its debt roughly in half, eliminated close to $300 million in leases, and adjusted its mix to focus on its more stable industrial segment. - We are assigning our 'B-' issuer credit rating to Covia. The outlook is positive. - At the same time, we are assigning our 'B-' issue-level rating and '3' recovery rating to the company's new $806 million senior secured term loan due 2026. The '3' recovery rating reflects our expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of default. - The positive outlook reflects that we could raise our rating on Covia over the next 12 months, if industry conditions develop in line with our expectations and as the company builds its track record after the recent restructuring....

Research Update