Research Update: TPC Group Inc. Ratings Affirmed, Outlook Stable; Proposed First-Lien Senior Secured Term Loan Rated 'BB-'

TPC Group Inc. has launched a transaction to raise debt to refinance its existing capital structure and to fund a one-time shareholder distribution. In addition, the company is also pursuing a potential share buyback of up to $50 million using internal cash. The proposed capital structure will include a new first-lien term loan maturing in 2031 and a new and smaller ABL facility maturing in 2027. We affirmed all our ratings on TPC Group Inc., including our 'B' issuer credit rating and 'BB-' issue-level rating on its senior secured debt. The '1' recovery rating on the senior secured debt is unchanged. We also assigned our 'BB-' issue-level and '1' recovery ratings to its proposed first-lien senior secured term loan. The

...- TPC Group Inc. has launched a transaction to raise debt to refinance its existing capital structure and to fund a one-time shareholder distribution. In addition, the company is also pursuing a potential share buyback of up to $50 million using internal cash. - The proposed capital structure will include a new first-lien term loan maturing in 2031 and a new and smaller ABL facility maturing in 2027. - We affirmed all our ratings on TPC Group Inc., including our 'B' issuer credit rating and '##-' issue-level rating on its senior secured debt. The '1' recovery rating on the senior secured debt is unchanged. We also assigned our '##-' issue-level and '1' recovery ratings to its proposed first-lien senior secured term loan. - The stable outlook reflects our view that TPC's credit metrics have sufficient cushion at the current rating for this transaction due to strength in earnings and cash flows....

Research Update