TPC Group Inc. Upgraded To 'B' On Refinancing And Improved Operating Results; Outlook Stable; New Debt Rated

TPC Group Inc. is planning to refinance its capital structure by issuing $930 million in new senior secured notes due 2024. In addition, the company will put in place a new $200 million asset-backed lending (ABL) credit facility (unrated), proceeds of which will primarily repay existing debt and transaction-related fees. S&P Global Ratings is raising its issuer credit rating on TPC and the ratings on the company's existing 2020 senior notes to 'B' from 'B-'. The recovery rating on the 2020 notes remains '4', reflecting our expectation of average (30%-50%; rounded estimate 35%) recovery in the event of a payment default. We plan to withdraw issue-level ratings on the 2020 notes once the new proposed notes are funded and the

...July 15, 2019 - TPC Group Inc. is planning to refinance its capital structure by issuing $930 million in new senior secured notes due 2024. In addition, the company will put in place a new $200 million asset-backed lending (ABL) credit facility (unrated), proceeds of which will primarily repay existing debt and transaction-related fees. - S&P Global Ratings is raising its issuer credit rating on TPC and the ratings on the company's existing 2020 senior notes to 'B' from 'B-'. The recovery rating on the 2020 notes remains '4', reflecting our expectation of average (30%-50%; rounded estimate 35%) recovery in the event of a payment default. We plan to withdraw issue-level ratings on the 2020 notes once the new proposed notes are funded and the 2020 notes are redeemed. - At the same time, we are assigning 'B' issue-level and '4' recovery ratings to the proposed new senior secured notes due 2024. - The stable outlook reflects our view that TPC will continue to generate modest positive free cash...

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