S&P lowers Everest loan, notes

Standard & Poor's said it lowered its preliminary issue-level ratings on Everest Acquisition LLC's senior secured term loan due 2018 and its senior secured notes due 2019 to BB- from BB.

The agency said it also revised the preliminary recovery ratings on this debt to 4 from 2, reflecting an expectation of average recovery for secured creditors in the event of a payment default.

The agency said the revised issue-level rating is in line with its BB- preliminary corporate credit rating on the company.

The B preliminary issue-level rating and 6 preliminary recovery rating on Everest's senior unsecured notes due 2020 are unchanged.

According to S&P, because of strong market demand, Everest has elected to upsize its senior secured notes issue to $750 million from $500 million and to upsize its senior secured term loan to $750 million from $500 million.

The greater amount of secured debt results in a lower recovery rating, the agency said.

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