S&P affirms Tempo Acquisition

S&P said it affirmed the B corporate credit rating on Tempo Acquisition LLC and affirmed the B issue-level rating on the company's first-lien term loan, including the $185 million add-on.

The 3 recovery rating is unchanged, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) of principal in the event of payment default.

The agency also affirmed the CCC+ issue-level rating on the company's senior notes, including the $200 million add-on. The 6 recovery rating is unchanged, indicating an expectation for negligible recovery (0%-10%; rounded estimate: 0%).

The outlook is stable.

Tempo intends to use proceeds from the term loan and senior notes to fund a $400 million dividend to its shareholders.

“The affirmation reflects our expectation that the proposed transaction will not increase leverage significantly enough to change our assessment of Tempo's financial risk,” S&P said in a news release.

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