S&P ups Emerald Expositions, rates loan BB

S&P said it raised its ratings on Emerald Expositions Holding Inc., including the corporate credit rating to BB- from B+.

The outlook is stable.

At the same, S&P assigned a BB issue-level and 2 recovery ratings on to the company's proposed senior secured credit facility, which consists of a $150 million revolver due 2022 and a $565 million term loan due 2024. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%; rounded estimate: 80%) of principal in the event of a payment default. The issue-level rating is one-notch higher than the BB- corporate credit rating.

“The upgrade reflects Emerald's lower leverage as a result of it using approximately $160 million of the proceeds from its recent IPO to repay debt,” said S&P credit analyst Jawad Hussain in a news release. “Pro forma for the transaction, we expect the company's adjusted leverage to be in the high-3x area--a decline from 4.8x at the end of 2016.”

© 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.