S&P: Arrowhead loans B-, CCC

Standard & Poor's said it revised the outlook on Arrowhead General Insurance Agency Inc. to stable from negative.

The agency also said it affirmed its B- counterparty credit rating and assigned a B- rating to its pending $115 million first-lien term loan due 2016 and $15 million revolver due 2015.

S&P said it expects the revolver to remain undrawn at closing.

The recovery rating on the senior secured credit facilities is 3, which indicates 50% to 70% expected recovery in a default.

The agency also said it assigned a CCC rating on Arrowhead's pending $42 million second-lien term loan due in 2017. The recovery rating on the second-lien term loan is 6, indicating 0% to 10% recovery in a default.

The outlook revision reflects a view that Arrowhead's refinancing will improve its liquidity metrics, S&P said.

The agency said it expect the new credit agreement to have more favorable financial covenants than those of its existing facilities, which mitigates concerns on Arrowhead remaining covenant-compliant.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.