S&P rates Empower Payments loans B, CCC

S&P said it assigned its B- corporate credit rating to Empower Payments Acquisition Inc. The outlook is stable.

At the same time, S&P assigned a B issue-level rating and 2 recovery rating to the company's $20 million senior secured revolving credit facility due 2021 and $207 million senior secured first-lien term loan due 2023. The 2 recovery rating indicates an expectation for significant (70%-90%; in the lower half of the range) recovery in the event of payment default.

S&P also assigned a CCC issue-level rating and 6 recovery rating to the company's $83 million second-lien term loan due 2024. The 6 recovery rating indicates an expectation for negligible (0%-10%) recovery in the event of a payment default.

“The rating on RevSpring reflects its small scale in a competitive industry environment, limited differentiation when compared with peers, and very high pro forma leverage following the leveraged buyout,” said S&P credit analysts Minesh Shilotri in a news release.

This is partly offset by a large and sticky customer base, high revenue retention and the regulated industry in which the company operates, the agency said.

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