Research Update: Stonepeak Taurus Lower Holdings LLC Assigned 'B' Issuer Credit Rating, Outlook Stable; Proposed Term Loan Rated 'B+'

Stonepeak Taurus Lower Holdings LLC (which operates under the name TRAC Intermodal) is proposing to issue a $350 million second-lien term loan to finance a dividend payout to its sponsor, Stonepeak Infrastructure Partners. We assigned our 'B' issuer credit rating to TRAC Intermodal. At the same time, we assigned our 'B+' issue-level rating and '2' recovery rating (70%-90%; rounded estimate: 80%) to the proposed $350 million second-lien term loan due 2030. The stable outlook indicates our expectation for credit metrics that will remain commensurate with the rating as the company's operations will continue to benefit from favorable market conditions through the first half of 2022, with some moderation thereafter. We expect the company to increase its revenue by about 40%

...- Stonepeak Taurus Lower Holdings LLC (which operates under the name TRAC Intermodal) is proposing to issue a $350 million second-lien term loan to finance a dividend payout to its sponsor, Stonepeak Infrastructure Partners. - We assigned our 'B' issuer credit rating to TRAC Intermodal. - At the same time, we assigned our 'B+' issue-level rating and '2' recovery rating (70%-90%; rounded estimate: 80%) to the proposed $350 million second-lien term loan due 2030. - The stable outlook indicates our expectation for credit metrics that will remain commensurate with the rating as the company's operations will continue to benefit from favorable market conditions through the first half of 2022, with some moderation thereafter....

Research Update