S&P rates Evertec loan B+

Standard & Poor's said it placed the B+ corporate credit rating on Evertec LLC on CreditWatch with positive implications.

The agency also said it assigned a B+ rating to the company's proposed first-lien senior secured credit facilities consisting of a $100 million revolver, $300 million term loan A and $400 million term loan B.

The ratings also were placed on CreditWatch with positive implications.

The recovery rating on this debt is 3, indicating 50% to 70% expected default recovery.

The rating on the existing first-lien senior secured credit facilities remains unchanged at BB- and the recovery rating remains at 2, indicating 70% to 90% expected default recovery. The B- issue-level and 6 recovery ratings on the existing senior unsecured notes also are unchanged. The 6 recovery rating indicates 0% to 10% expected default recovery.

The agency said it will withdraw all of these ratings if and when the company completes the proposed refinancing.

The credit watch follows Evertec's clarification of the timing of its planned initial public offering, S&P said.

The company is targeting an April 2013 launch of an IPO, which it intends to use to partially repay existing noteholders.

Based upon these events, the agency said it expects 2012 pro forma adjusted leverage to decline to about 4x from the current mid-4x range.

Given the growth projections and assumptions on debt repayment, leverage could approach 3.5x by 2013 fiscal year-end, S&P said.

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