S&P rates TitleMax notes B+

Standard & Poor's said it affirmed its B+ issuer credit rating on TMX Finance LLC and B+ issuer credit rating on TitleMax Finance Corp.

The outlook is stable.

At the same time, S&P assigned a B+ rating and 4 recovery rating to TitleMax's proposed $500 million secured note offering.

The agency will withdraw the issue rating and recovery rating on the company's existing senior secured notes of B+ and 3, respectively, upon close of the proposed offering.

TitleMax announced that it plans to refinance its $25 million revolving credit facility and $310 million senior secured notes by issuing a $75 million revolving credit facility and $500 million of senior secured notes. TitleMax will use the excess proceeds to pay down $100 million of payment-in-kind notes the company's parent issued in November. TitleMax will also use the proceeds to fund its strong growth.

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