S&P affirms IG Investments after add-on

Standard & Poor’s said it affirmed the B corporate credit rating on IG Investments Holdings LLC.

The outlook remains stable.

The agency also said it affirmed the B rating on the company’s senior secured first-lien term loan following the company’s proposed $210 million add-on.

The 3 recovery rating on the term loan and revolving credit facility are unchanged following proposed amendments that extend maturity on the term loan to 2021 from 2019 and to 2019 from 2017 on the revolver.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The proceeds from the $210 million add-on will be used to pay up to $197 million in shareholder distributions.

The ratings reflect an expectation that the company’s leverage will remain at more than 5x in 2015 despite favorable organic revenue growth prospects, reflecting the company’s aggressive financial policy and history of debt-financed shareholder distributions, S&P said.

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