S&P affirms Emerald Expositions after add-on

Standard & Poor's said it affirmed Emerald Expositions Holding Inc.'s B+ corporate credit rating.

The outlook is stable.

The agency also said it affirmed the BB- rating on the company's senior secured term loan and revolving credit facility. The company is putting in place a $200 million add-on to its term loan due 2020, S&P said.

The proceeds, together with a $140 million equity contribution from private equity sponsor Onex Partners, will be used to finance the $335 million acquisition of trade show organizer GLM Superholdings LLC, the agency said.

The recovery rating on the term loan and revolving credit facility remains at 2, indicating 70% to 90% expected default recovery.

S&P also said it affirmed the B- rating on the company's senior unsecured notes. The recovery rating on this debt remains at 6, indicating 0% to 10% expected default recovery.

The ratings reflect an expectation that the company's debt leverage will remain high over the intermediate term, the agency said.

The acquisition provides a good strategic fit by increasing the revenue base by roughly 50% and adding four large shows in the top 100, S&P said.

The ratings also consider the company's sensitivity to economic weakness, its concentration in several categories in the tradeshow industry and high profitability, the agency added.

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