Research Update: NorthStar Group Services Inc. Assigned 'B' Issuer Credit Rating, Stable Outlook; Secured Term Loan Rated 'B'

Commercial deconstruction- and nuclear decommissioning-focused environmental services firm NorthStar Group Services Inc. is issuing credit facilities to fund a dividend distribution to shareholders (which include affiliates of financial sponsor J.F. Lehman&Co.) and to refinance its existing capital structure. Following the dividend recapitalization transaction, we expect adjusted leverage to be slightly over 4.0x. We are assigning our 'B' long-term issuer credit rating and 'B' issue-level rating and '3' recovery rating to the proposed $555 million senior secured term loan due 2027. The proposed $100 million asset-based revolving credit facility (ABL) due 2025 is not rated. The stable outlook reflects our view that the company's good backlog of project-based work and efficient execution should allow it to generate appropriate credit

...- Commercial deconstruction- and nuclear decommissioning-focused environmental services firm NorthStar Group Services Inc. is issuing credit facilities to fund a dividend distribution to shareholders (which include affiliates of financial sponsor J.F. Lehman & Co.) and to refinance its existing capital structure. - Following the dividend recapitalization transaction, we expect adjusted leverage to be slightly over 4.0x. - We are assigning our 'B' long-term issuer credit rating and 'B' issue-level rating and '3' recovery rating to the proposed $555 million senior secured term loan due 2027. - The proposed $100 million asset-based revolving credit facility (ABL) due 2025 is not rated. - The stable outlook reflects our view that the company's good backlog of project-based work and efficient execution should allow it to generate appropriate credit measures for the rating over the next 12 months....

Research Update