S&P rates EagleView loans B+, CCC+

S&P said it affirmed its B issuer credit rating on EagleView Technology Corp. and revised the outlook to negative from stable.

At the same time, S&P assigned a B+ issue-level rating and 2 recovery rating on the company's proposed $85 million revolving credit facility and its $535 million first-lien term loan. The 2 recovery rating indicates an expectation for substantial recovery (70% to 90%, rounded estimate: 70%) in the event of a payment default.

In addition, S&P assigned a CCC+ issue-level rating and 6 recovery rating to the company's proposed second-lien term loan. The 6 recovery rating reflects an expectation for negligible recovery (0% to 10%, rounded estimate: 0%) in the event of a payment default.

The company intends to use the proceeds of the proposed term loans to repay its existing first-lien term loan and pay a dividend to one of its financial sponsors.

“The negative outlook on EagleView reflects our expectation that leverage will rise significantly, with adjusted debt to EBITDA in the mid-10x area at the time of the transaction, up from around 4.4x in fiscal 2017,” S&P said in a news release.

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