S&P rates Landmark loans B-, CCC

Standard & Poor's said it assigned a B- corporate credit rating to LM U.S. Member LLC, along with co-borrower LM U.S. Corp Acquisition Inc. (Landmark Aviation).

The outlook is stable.

The agency said it assigned a B- rating and 3 recovery rating to the company's proposed $335 million first-lien credit facility, which consists of a $75 million revolver due 2017 and a $260 million term loan due 2019.

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

The agency also assigned a CCC rating and 6 recovery rating to the proposed $130 million second-lien term loan that matures in 2020. The 6 recovery rating indicates 0% to 10% expected recovery.

The ratings reflect expectations that leverage will be very high following the proposed leveraged buyout of the company, with only modest improvement likely in the next 12 months because of limited free cash flow, S&P said.

The agency said it believe revenues and earnings will show modest growth over the next year because of recently acquired locations and increasing business jet usage.

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