S&P assigns RE/MAX CCR BB, loans BB+

S&P said it assigned its BB corporate credit rating to RE/MAX LLC.

The outlook is stable.

At the same time, the agency assigned its BB+ issue-level rating and 2 recovery rating to the company's proposed senior secured debt issues, which includes a $10 million revolving credit facility due 2021 and $235 million senior secured term loan due 2023. The 2 recovery rating indicates an expectation for substantial recovery (70% to 90%; lower half of the range) of principal in the event of a payment default.

The company will use the proceeds from the proposed credit facilities and cash balances to fund the refinancing of its existing debt, to acquire the master franchise rights for the New Jersey, Kentucky, Tennessee, Georgia and Southern Ohio regions, and for general corporate purposes.

"The BB corporate credit rating on RE/MAX primarily reflects our expectation for operating lease-adjusted debt to EBITDA to remain below 3.5x and funds from operations (FFO) to total operating lease-adjusted debt to be above 20% through 2017," S&P credit analyst Justin Gerstley said in a news release.

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