S&P rates Deliver Buyer facility B

S&P said it revised its outlook on Deliver Buyer Inc. to stable from positive and affirmed the B corporate credit rating.

In addition, the agency assigned a B issue-level rating to the company's proposed first-lien credit facility, consisting of a proposed $463 million term loan B due 2024 and the $85 million revolving credit facility.

The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of default.

Deliver Buyer plans to increase its term loan by $200 million and use the proceeds to pay a dividend to its financial sponsor, Thomas H. Lee Partners LP.

S&P said the revision reflects a deterioration in leverage by about an additional turn over the agency’s previous expectations.

“Following the proposed dividend recapitalization, adjusted leverage will rise to and remain in the 5x area compared with a previous expectation of 4x by the close of 2018,” S&P said in a news release.

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