US Foods Inc.'s Proposed $700 Million Senior Secured Term Loan Due 2027 Rated 'BB' (Recovery: '3') On Watch Negative - S&P Global Ratings’ Credit Research

US Foods Inc.'s Proposed $700 Million Senior Secured Term Loan Due 2027 Rated 'BB' (Recovery: '3') On Watch Negative

US Foods Inc.'s Proposed $700 Million Senior Secured Term Loan Due 2027 Rated 'BB' (Recovery: '3') On Watch Negative - S&P Global Ratings’ Credit Research
US Foods Inc.'s Proposed $700 Million Senior Secured Term Loan Due 2027 Rated 'BB' (Recovery: '3') On Watch Negative
Published Apr 24, 2020
3 pages (1447 words) — Published Apr 24, 2020
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

CHICAGO (S&P Global Ratings) April 24, 2020--S&P Global Ratings today assigned its 'BB' issue-level rating and '3' recovery rating to US Foods Inc.'s (USF) proposed $700 million senior secured term loan due 2027 and placed the issue-level rating on CreditWatch with negative implications. USF will use the proceeds from the term loan to fund a portion of its acquisition of Smart Foodservice. Subsequent to closing on the loan, we expect the company to use a portion of the net proceeds from its recent secured notes issuance to repay $400 million of the term loan. It will then convert the remaining $300 million term loan balance into a five-year facility. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded

  
Brief Excerpt:

...- General Criteria: Group Rating Methodology, July 1, 2019 - Criteria | Corporates | General: Corporate Methodology: Ratios And Adjustments, April 1, 2019 - Criteria | Corporates | General: Recovery Rating Criteria For Speculative-Grade Corporate Issuers, Dec. 7, 2016 - Criteria | Corporates | General: Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Dec. 16, 2014...

  
Report Type:

Ratings Action

Ticker
UFS
Issuer
US Foods Inc.
GICS
Food Distributors (30101020)
Sector
Global Issuers
Country
United States
Region
United States
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "US Foods Inc.'s Proposed $700 Million Senior Secured Term Loan Due 2027 Rated 'BB' (Recovery: '3') On Watch Negative" Apr 24, 2020. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/US-Foods-Inc-s-Proposed-700-Million-Senior-Secured-Term-Loan-Due-2027-Rated-BB-Recovery-3-On-Watch-Negative-2418729>
  
APA:
S&P Global Ratings’ Credit Research. (). US Foods Inc.'s Proposed $700 Million Senior Secured Term Loan Due 2027 Rated 'BB' (Recovery: '3') On Watch Negative Apr 24, 2020. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/US-Foods-Inc-s-Proposed-700-Million-Senior-Secured-Term-Loan-Due-2027-Rated-BB-Recovery-3-On-Watch-Negative-2418729>
  
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