S&P rates Internap loan B

Standard & Poor's said it assigned a B corporate credit rating to Internap Network Services Corp.

The agency also said it assigned a B rating to the company's $350 million senior secured credit facilities. The proposed facilities consist of a $300 million term loan due 2019 and a $50 million revolving credit facility due 2018.

The 3 recovery rating indicates 50% to 70% expected default recovery. The company will use proceeds to acquire iWeb Group Inc., refinance existing indebtedness, add liquidity to the balance sheet and pay transaction fees.

The outlook is stable.

The ratings reflect the company's highly leveraged financial risk profile and weak business risk profile, said Michael Weinstein, an S&P analyst.

The stable rating outlook reflects an expectation that leverage will remain at more than 5x, the agency said.

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