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S&P ups EmployBridge, rates loan B-
S&P said it raised its corporate credit rating on EmployBridge Holding Co. to B- from CCC+. The outlook is stable.
At the same time, the agency assigned its B- issue-level rating to the company's proposed $485 million senior secured first-lien term loan due 2025. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) of principal for lenders in the event of a payment default.
S&P said it will withdraw its issue-level and recovery ratings on the company's existing debt once the transaction closes.
“The upgrade reflects EmployBridge's reduced covenant pressure, absence near-term debt maturities and reduced cash interest burden following the refinancing,” the agency said in a news release.
“Furthermore, we expect EmployBridge will benefit from continued modest revenue growth and EBITDA margin improvement, and its leverage will remain in mid- to low-6x range (adjusted to include the $125 million preferred perpetual equity as debt) in 2018 and 2019.”
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