S&P assigns RevSpring loans B, CCC ratings

S&P said it affirmed its B- issuer credit rating on Empower Payments Acquisition Inc. The outlook remains stable.

At the same time, S&P assigned a B- issuer credit rating to RevSpring Inc. The outlook is stable.

Additionally, S&P assigned a B issue-level rating and 2 recovery rating to RevSpring's senior secured facility. The senior secured facility comprises a $35 million revolving credit facility due 2023 and a $365 million first-lien term loan due 2025. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%; rounded estimate: 70%) in the event of a default.

S&P also assigned a CCC issue-level rating and 6 recovery rating to RevSpring's $120 million second-lien term loan due 2026. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a default.

“The affirmation is based on our expectation that the acquisition of Apex will elevate Empower's leverage over the next 12-18 months. We anticipate that its leverage will decline to the low-10x area in 2019 (low-to-mid 7x area without the inclusion of preferred equity, which we treat as debt) with the support of contributions from Apex and operational efficiencies,” S&P said in a news release.

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