S&P rates MIH facilities B-, CCC

S&P said it affirmed the B- corporate credit rating on MIH Parent Inc., the parent company of Mitchell International Inc.

The agency also assigned a B- issue-level rating to its $1.08 billion first-lien credit facilities, which consist of a $75 million five-year revolving credit facility and a $1.005 billion seven-year term loan, of which $75 million is delayed-draw.

The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) of principal in the event of a payment default.

The outlook is stable.

S&P also assigned a CCC issue-level rating to the company's $450 million second-lien term loan. The 6 recovery rating indicates expectations for negligible recovery (0%-10%; rounded estimate: 0%).

The company plans to pay a $381 million dividend with the proceeds from new bank credit facilities.

The agency said that despite adjusted leverage increasing to the 9x area following the recapitalization, the corporate credit rating affirmation reflects a view that Mitchell International will maintain adequate liquidity, continue to experience growth in all segments and modestly deleverage through earnings growth.

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