S&P rates Cardinal loan B

S&P said it assigned its preliminary B long-term corporate credit ratings to Cardinal Holdings 3 LP and to its subsidiary Cardinal US Holdings, Inc. The outlooks are stable.

At the same time, S&P assigned a preliminary B issue rating and 3 recovery rating to Cardinal US Holdings' proposed senior secured $250 million term loan B maturing in 2024 and its proposed $65 million revolving credit facility maturing in 2022. The 3 recovery rating reflects an expectation of meaningful recovery prospects (50%-70%; rounded estimate: 50%) in the event of a payment default.

Cardinal Holdings 3 is a holding company set up to acquire Capco, currently owned by Fidelity National Information Services (FIS). In May 2017, private equity firm Clayton Dubilier & Rice (CD&R) announced a definitive agreement to acquire a controlling 60% stake in Capco, while the current owner retains a 40% stake.

The carved-out entity operates as a consulting services company providing technological, digital and business advisory services to banks and financial services groups.

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