S&P gives TMX Finance notes B-

S&P said it affirmed its issuer credit rating on TMX Finance LLC at B-.

The outlook remains negative.

At the same time, the agency assigned a B- issue rating to the company's new senior secured notes due 2023. The recovery rating is 4, indicating an expectation of an average (40%) recovery in the event of default.

The company plans to use the net proceeds along with cash to redeem its existing $532 million of 8½% senior secured notes due September 2018.

“Pro forma, we expect leverage to remain above 5.0x and EBITDA coverage to remain below 2.5x,” S&P said in a news release.

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