S&P assigns B+ to Argus Media loan

S&P said it assigned B+ issue-level and 3 recovery ratings to Argus Media’s (Fleet Topco Ltd.) planned $1.2 billion senior secured term loan. The 3 recovery rating indicates meaningful (60%) recovery prospects.

Argus’ parent Fleet Topco plans to refinance its capital structure by issuing a $135 million revolving credit facility and the term loan, of which it will use the proceeds to redeem its outstanding $479 million term loan and distribute about $749 million to shareholders.

As part of the transaction, its shareholders, private equity firm General Atlantic and Adrian Binks, will buy Hg Capital's minority shares of the company and as a result, private equity sponsors will no longer control the company.

S&P concurrently affirmed Argus’ B+ rating and in a statement said, “The affirmation reflects our view that, following the transaction, Argus' adjusted leverage will reduce below 5.5x in line with its financial policy commitment.”

The outlook is stable.

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