Research Update: Reception Purchaser LLC Assigned 'B' Issuer Credit Rating; Outlook Stable; Debt Also Rated

Reception Purchaser LLC (operating as STG Logistics) is proposing to issue a $725 million first-lien term loan due 2028, $60 million revolving credit facility due 2027, and up to a $90 million letter of credit revolving credit facility due 2027. Along with an equity contribution from Wind Point Partners and Oaktree Capital Management, STG will use proceeds to finance the merger of STG, one of Wind Point's current investments, with XPO Logistics Inc.'s intermodal segment. S&P Global Ratings assigned its 'B' issuer credit rating to STG. We also assigned our 'B' issue-level rating and '3' recovery rating (rounded estimate: 60%) to the proposed first-lien credit facility. The stable outlook reflects our expectation that credit metrics will improve modestly over the

...- Reception Purchaser LLC (operating as STG Logistics) is proposing to issue a $725 million first-lien term loan due 2028, $60 million revolving credit facility due 2027, and up to a $90 million letter of credit revolving credit facility due 2027. - Along with an equity contribution from Wind Point Partners and Oaktree Capital Management, STG will use proceeds to finance the merger of STG, one of Wind Point's current investments, with XPO Logistics Inc.'s intermodal segment. - S&P Global Ratings assigned its 'B' issuer credit rating to STG. We also assigned our 'B' issue-level rating and '3' recovery rating (rounded estimate: 60%) to the proposed first-lien credit facility. - The stable outlook reflects our expectation that credit metrics will improve modestly over the next year and remain in line with the rating, with debt to EBITDA improving to the low-4x area in 2023 from the high-4x area in 2022, as the company integrates the former XPO operations....

Research Update