S&P: Millennium Park loan B-

S&P said it assigned a B- corporate credit rating to Millennium Park Intermediate LLC.

The outlook is stable.

The agency also said it assigned a B- rating and 3 recovery rating to the company's $225 million senior secured first-lien term loan and $30 million senior secured first-lien revolver credit facility.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P said it did not rate Millennium Park's privately placed $95 million second-lien term loan, even though it considered the debt when determining the corporate credit rating on the company.

The ratings reflect the company's small size, limited geographic diversity, high operating leverage and participation in a niche segment of the competitive marketing services industry, low client concentration with high client retention rates and high leverage, the agency said.

The stable outlook reflects an expectation that Millennium Park will integrate its acquisitions over the next 12 months and realize synergies so that adjusted leverage is about 8.5x to 8.8x and free operating cash flow is a negative $8 million to negative $10 million in 2017, S&P explained.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.