S&P assigns Vertrue loans B+, CCC+

Standard & Poor's said it assigned bank loan and recovery ratings to the proposed $660 million senior secured credit facilities of Vertrue Inc. (B+/Watch negative).

The proposed $460 million first-lien bank loan is rated B+, with a recovery rating of 2, indicating S&P's expectation of substantial recovery in the event of a payment default.

At the same time, the agency said it assigned ratings to the company's $200 million second-lien term loan due 2015, noting that the CCC+ rating and recovery rating of 6 indicate the expectation of negligible recovery in the event of a payment default.

The ratings on Vertrue reflect some customer concentration risk, the competitive and fragmented online personal-ads market and an acquisition-oriented growth strategy, S&P said, adding that these factors are only partially offset by the company's good market position in niche consumer discount membership programs and its good recurring revenue stream from renewals.

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