Covia Holdings LLC is refinancing its outstanding debt with a new $850 million first-lien term loan and new $150 million revolving credit facility. The refinancing follows the separation of the company?s energy business in July 2024, which we expect will result in higher leverage and more earnings stability and a higher-margin profile for the remaining industrial business. As a result, we affirmed our 'B' issuer credit rating and removed all our ratings from CreditWatch, where we placed them with negative implications on March 7, 2024. We also assigned a 'B' issue-level rating and ?3? recovery rating to the proposed senior secured term loan. The stable outlook reflects our expectation that Covia will sustain leverage of 4x-5x over the next 12
