Research Update: Odyssey Logistics And Technology Corp. Upgraded To 'B' On Proposed Debt Repayment; Outlook Stable

Odyssey Logistics and Technology Corp. under the proposed transaction will amend its existing first-lien term loan and revolving credit facility to extend their maturities to October 2027 and July 2027, respectively. Additionally, the company has proposed to use the proceeds from the April 2023 sale of its Linden bulk tank transportation business toward repayment of the $106 million outstanding balance on its second-lien term loan. In 2023, we expect Odyssey's S&P Global Ratings-adjusted debt to EBITDA will be in the low-4x area and its funds from operations (FFO) to debt will be in the low-teens percent area. Therefore, we raised our issuer credit rating on the company to 'B' from 'B-'. At the same time, we affirmed our 'B' issue-level

...- Odyssey Logistics and Technology Corp. under the proposed transaction will amend its existing first-lien term loan and revolving credit facility to extend their maturities to October 2027 and July 2027, respectively. Additionally, the company has proposed to use the proceeds from the April 2023 sale of its Linden bulk tank transportation business toward repayment of the $106 million outstanding balance on its second-lien term loan. - In 2023, we expect Odyssey's S&P Global Ratings-adjusted debt to EBITDA will be in the low-4x area and its funds from operations (FFO) to debt will be in the low-teens percent area. - Therefore, we raised our issuer credit rating on the company to 'B' from 'B-'. - At the same time, we affirmed our 'B' issue-level rating on Odyssey's senior secured term loan and revised our recovery rating to '3' from '2'. - The stable outlook reflects our expectation that the company's credit metrics will remain in line with the rating in 2023. This is despite our belief...

Research Update