S&P affirms Cast & Crew after add-on

S&P said it affirmed the B corporate credit rating on Cast & Crew Payroll, LLC.

The outlook is stable.

The agency also said it affirmed the B+ rating on the company's first-lien revolving credit facility due in 2020 and $350 million first-lien term loan due in 2022, which was upsized from $270 million.

The recovery rating on these first-lien facilities remains at 2, indicating 70% to 90% expected default recovery.

S&P also said it affirmed the CCC+ rating on the company's $95 million second-lien term loan due 2023.

The recovery rating remains at 6, indicating 0 to 10% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to the company's proposed $50 million second-lien notes due 2024.

The ratings reflect Cast & Crew's highly leveraged financial condition, financial sponsor ownership and narrow business focus on providing tech-enabled payroll processing services for the entertainment production industry, the agency said.

Cast & Crew is acquiring CAPS LLC, which will gain the company entry to an adjacent vertical serving the production of commercials and live events, S&P explained.

The agency said it also factored into the rating the company's good market position, diversified client base and high client retention rates, the agency said.

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