(The following statement was released by the rating agency)
Oct 3 - Standard & Poor's Ratings Services today said it assigned its issue-level and recovery ratings to Progressive Waste Solutions Ltd.'s (PWS; BB+/Stable/--) proposed refinancing in the amount of US$2.25 billion, comprising a US$1.75 billion revolver and US$500 million term loan B. We rate both the revolver and term loan 'BBB-' (one notch above the corporate credit rating on PWS), with a recovery rating of '2', indicating our expectation that lenders would receive substantial (70%-90%) recovery in a default scenario.
Under the proposed refinancing, PWS will be the borrower of the new credit facility, which will replace the debt held at its U.S. (IESI Corp.) and Canadian (BFI Canada) subsidiaries. PWS will now finance its operations on a consolidated basis as all subsidiary-level credit facilities will be retired. In addition, the company's debt maturity schedule will be extended with the new facility, with the revolver expected to mature in 2017 and term loan B expected due in 2019.
"The refinancing will not affect debt levels and the company's financial risk profile will remain within our expectations for the rating," said Standard & Poor's credit analyst Jatinder Mall.
(For the complete recovery analysis, see the recovery report on PWS, to be published on RatingsDirect on the Global Credit Portal, following this media release. For the complete corporate credit rating rationale, see the research report on PWS, published Sept. 28, 2012, on RatingsDirect.)
RATINGS LIST Progressive Waste Solutions Ltd. Corporate credit rating BB+/Stable/-- Ratings Assigned US$1.75 billion revolver BBB- Recovery rating 2 US$500 million term loan B BBB- Recovery rating 2
(Caryn Trokie, New York Ratings Unit)