S&P: HT Intermediate unchanged

Standard & Poor's said the $10 million increase in HT Intermediate Holdings Corp.'s senior pay-in-kind toggle notes to $110 million has no effect on its corporate credit rating, issue-level and recovery ratings or outlook.

The company said it will use the proceeds to fund about $106 million dividend to shareholders and pay related fees and expenses.

Although recovery prospects for lenders diminish somewhat because of the facility upsize, the recovery rating on that debt instrument remains at 6, indicating 0% to 10% expected default recovery.

Pro forma for the transaction, the company's total debt-to-EBITDA ratio increases modestly to about 4.8x as of Aug. 3 from 4.7x before the notes upsize and 3.9x before the transaction, S&P said.

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