S&P rates USIC loans B, CCC+

S&P said it affirmed the B corporate credit rating on USIC Holdings Inc.

The outlook is stable.

The agency also said it assigned a B rating and 3 recovery rating to the company's proposed $85 million revolving credit facility due 2021 and $635 million first-lien term loan due 2023.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to USIC's proposed $165 million second-lien term loan. The 6 recovery rating reflects 0 to 10% expected default recovery.

The proceeds will be used to refinance its rated debt issues consisting of a $75 million revolver due 2018, $470 million first-lien term loan due 2020 and $165 million second-lien term loan due 2021, the agency said, and pay a $200 million dividend to shareholders.

The outlook reflects a belief that the company will continue to generate consistent free operating cash flow over the next 12 months, the agency said.

Given USIC's proposed debt-funded distribution to shareholders, adjusted leverage is at the higher end of the expectations for the current rating, S&P said.

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