Research Update: Global Infrastructure Solutions Inc. 'BB-' Rating Affirmed, Outlook Stable; Senior Unsecured Notes Rated 'BB-'

Global Infrastructure Solutions Inc. (GISI), a U.S.-based engineering and construction service provider, is seeking to issue $300 million of 10-year senior unsecured notes to fund acquisitions. We affirmed our 'BB-' issuer credit rating on GISI. At the same time, we assigned our 'BB-' issue-level rating and '4' recovery rating to the proposed $300 million senior unsecured notes and affirmed the rating on the existing $400 million notes. The '4' recovery ratings indicate our expectation for average (30%-50; rounded estimate: 45%) recovery in the event of a payment default. The stable outlook reflects our view that GISI will achieve topline and profitability growth from a strong backlog and acquisitions over the next 12 months. We anticipate its adjusted debt to EBITDA

...- Global Infrastructure Solutions Inc. (GISI), a U.S.-based engineering and construction service provider, is seeking to issue $300 million of 10-year senior unsecured notes to fund acquisitions. - We affirmed our '##-' issuer credit rating on GISI. - At the same time, we assigned our '##-' issue-level rating and '4' recovery rating to the proposed $300 million senior unsecured notes and affirmed the rating on the existing $400 million notes. The '4' recovery ratings indicate our expectation for average (30%-50; rounded estimate: 45%) recovery in the event of a payment default. - The stable outlook reflects our view that GISI will achieve topline and profitability growth from a strong backlog and acquisitions over the next 12 months. We anticipate its adjusted debt to EBITDA will remain below 4x pro forma for the transactions....

Research Update