S&P assigns Arrowhead loans 3, 6

Standard & Poor's said it assigned its recovery rating of 3 to Arrowhead General Insurance Agency Inc.'s $130 million first-lien term loan due 2012 and $15 million revolving credit facility due 2011, adding that the 3 recovery rating indicates that the lenders can expect meaningful recovery in the event of payment default.

At the same time, S&P said it assigned its recovery rating of 6 to Arrowhead's $40 million second-lien term loan due 2013.

The 6 recovery rating indicates that the lenders can expect negligible recovery of principal in the event of payment default resulting in a subordinated debt rating two notches lower than the counterparty credit rating, the agency said.

According to S&P, there are no rating implications for the existing B counterparty, first-lien term loan and revolving credit facility ratings or the existing CCC+ rating on the second-lien term loan.

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