Research Update: Livingston International Inc. Affirmed At 'B-' With A Stable Outlook; Proposed Debt Rated

Livingston International Inc. plans to refinance its existing capital structure with proceeds from new secured credit facilities. We expect the proposed transaction to reduce debt by about C$80 million and push out the company's debt maturity profile, thereby improving liquidity and reducing the company's refinancing risks. As a result, on April 23, 2019, S&P Global Ratings affirmed its 'B-' long-term issuer credit rating on Livingston. We also assigned our 'B-' issue-level rating and '3' recovery rating to the company's proposed US$272 million first-lien term loan facility due 2026 and C$175 million revolving credit facility due 2024. In addition, we assigned our 'CCC' issue-level rating and '6' recovery rating to Livingston's proposed US$75 million second-lien term loan facility due 2027. The

...- Livingston International Inc. plans to refinance its existing capital structure with proceeds from new secured credit facilities. - We expect the proposed transaction to reduce debt by about C$80 million and push out the company's debt maturity profile, thereby improving liquidity and reducing the company's refinancing risks. - As a result, on April 23, 2019, S&P Global Ratings affirmed its 'B-' long-term issuer credit rating on Livingston. - We also assigned our 'B-' issue-level rating and '3' recovery rating to the company's proposed US$272 million first-lien term loan facility due 2026 and C$175 million revolving credit facility due 2024. - In addition, we assigned our '###' issue-level rating and '6' recovery rating to Livingston's proposed US$75 million second-lien term loan facility due 2027. - The stable outlook reflects our expectation that positive annual organic revenue growth of 1%-2% and improving adjusted EBITDA margins should contribute to positive free operating cash flow...

Research Update