S&P rates Recess Holdings facilities B, CCC+

S&P said it assigned its B corporate credit rating to Recess Holdings Inc. (PlayCore) and assigned a B issue-level rating and 3 recovery rating to the company's proposed senior secured first-lien term B facility due 2024. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery for lenders in the event of a payment default.

The outlook is stable.

In addition, the agency assigned a CCC+ issue-level rating and 6 recovery rating to the company's proposed $145 million second-lien term loan due 2025. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 0%) recovery for lenders in the event of a payment default.

“The B corporate credit rating reflects high lease-adjusted leverage just above 6x through 2018, operations in competitive and fragmented playground systems and outdoor recreational equipment markets, and a meaningful one-third of sales to municipal customers that can be volatile over the economic cycle,” S&P said in a news release.

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