S&P assigns B to Recess loan

S&P said it assigned B issue-level and 3 recovery ratings to Recess Holdings Inc.’s (PlayCore) planned $640 million first-lien term loan due in 2027. The 3 recovery rating indicates substantial (50%-70%; rounded estimate: 55%) recovery in default.

The company plans to use the proceeds to repay its first-lien term loan due in 2024, rated B+ with a 2 recovery rating, with $396 million outstanding, second-lien term loan due in 2027 with $145 million outstanding, fund cash on the balance sheet potentially for acquisitions, and cover transaction fees and expenses. Additionally, PlayCore plans to upsize its unrated asset-based lending revolver commitment to $125 million and extend the maturity to 2026.

The outlook is stable.

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