S&P: Edgewood Partners loan B

Standard & Poor’s said it assigned a B long-term corporate credit rating to Edgewood Partners Insurance Center Inc.

The agency also said it assigned a B debt rating to subsidiary Edgewood Partners Holdings LLC’s proposed $250 million first-lien credit facilities, which consist of a $200 million term loan due 2023 and $50 million revolver due 2021.

A recovery rating of 3 also was assigned to the facilities, which indicates 50% to 70% expected default recovery.

The outlook is stable.

The ratings reflect Edgewood’s weak business risk profile and highly leveraged financial risk profile, S&P said.

The company is using its transaction to repay existing debt on the balance sheet and accelerate growth at the company with additional financing capacity, the agency said.

The ratings also consider its weak business risk profile, constrained scope and scale and modest revenue base, S&P said.

The company operates in a highly competitive, fragmented and cyclical middle-market industry, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.