latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/tensar-downgraded-to-ccc-by-s-p-global-on-refi-risk-for-term-loan-60056751 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Tensar downgraded to CCC by S&P Global Ratings on refinance risk for term loan

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory


Tensar downgraded to CCC by S&P Global Ratings on refinance risk for term loan

Tensar Corp. was downgraded today by S&P Global Ratings to CCC, with a negative outlook, from B- and CreditWatch Negative, on concerns about an upcoming first-lien term loan refinancing in 2021. The company's senior secured debt was lowered as well, with the first-lien term loan cut to CCC+, from B, and its second-lien term loan cut to CCC-, from CCC+.

Ratings expressed specific concern about the company's $212 million outstanding first-lien term loan due in July 2021. An asset-based loan with $10 million outstanding also comes due within the next 12 months. The company's $78 million outstanding second-lien term loan matures in July 2022.

Ratings said that although it believes the company's results and infrastructure end markets have "largely been insulated from recessionary conditions to date," uncertainty regarding infrastructure spending in 2021 because of reduced state tax receipt collections in many states raises the risks that the company faces in refinancing its first-lien debt. Adding to the company's refinancing issues is "potentially challenging capital market conditions" because of the pandemic.

Ratings believes it is "unlikely" that Tensar would resort to a distressed exchange or discount repurchase of its debt, given the company's improved operating performance. But on the flip side, the pace of its projects has slowed because of labor shortages, while "general uncertainties" have led to some project delays. Also bearing watching is the company's margins, which are subject to raw material cost volatility, particularly its resins and diesel fuel.

Tensar produces durable polymer grid products used in earthwork construction applications. It is owned by private equity firm Castle Harlan.