S&P lifts RGIS, rates loan B+

Standard & Poor's said it raised the corporate credit rating on RGIS Holdings LLC to B+ from B.

The outlook is stable.

The company plans to reduce 2014 term loan debt maturities to $126 million from $441 million by way of an extension of $315 million to mature in 2016.

With a new $215 million incremental term loan due 2017, along with about $85 million of cash, the company plans to retire $300 million of 10¾% senior subordinated notes. The company also plans to refinance its $75 million revolver due 2013 with a $60 million revolver due 2017.

RGIS Services LLC is the issuer of the debt.

The agency also said it upgraded the issue ratings to B+ on the $126 million non-extended term loan and assigned a B+ issue ratings to the new $60 million revolver, the $315 million extended term loan and the new $215 million incremental term loan.

S&P also said it revised the recovery rating on the non-extended term loan to 4, indicating 30% to 50% expected recovery in a default, from 3. The recovery rating on each of the company's three new credit facilities is 4.

The upgrade reflects RGIS' improved credit protection measures on a pro forma basis resulting from the partial repayment of debt, the agency said.

The upgrade also considers a belief that the company will sustain improved credit metrics while pursuing acquisition and investment activity, S&P said.

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