Research Update: NorthStar Group Services Inc. Ratings Affirmed On Add-On Issuance; Outlook Stable

Commercial deconstruction and nuclear decommissioning services provider NorthStar Group Services Inc. and its co-borrower Waste Control Specialists LLC (not rated) are issuing a $200 million fungible add-on to its secured term loan due Nov. 12, 2026. Proceeds will recapitalize the company, including transferring ownership from certain existing equity holders to new equity holders, although the company will remain controlled by financial sponsor J.F. Lehman&Co. We anticipate the maximum financial leverage covenant will increase to 5.5x from 4.5x previously, allowing the company to maintain adequate headroom given the increase in debt. We affirmed our 'B' issuer credit rating and secured credit facility ratings, while our recovery rating for the secured debt (inclusive of the new term loan add-on) remains

...- Commercial deconstruction and nuclear decommissioning services provider NorthStar Group Services Inc. and its co-borrower Waste Control Specialists LLC (not rated) are issuing a $200 million fungible add-on to its secured term loan due Nov. 12, 2026. - Proceeds will recapitalize the company, including transferring ownership from certain existing equity holders to new equity holders, although the company will remain controlled by financial sponsor J.F. Lehman & Co. - We anticipate the maximum financial leverage covenant will increase to 5.5x from 4.5x previously, allowing the company to maintain adequate headroom given the increase in debt. - We affirmed our 'B' issuer credit rating and secured credit facility ratings, while our recovery rating for the secured debt (inclusive of the new term loan add-on) remains '3'. - The stable outlook reflects our view that healthy activity levels at its two major nuclear decommissioning projects along with demolition services will allow the company...

Research Update