S&P rates Firstlight loan add-on B-

S&P said it assigned its B- rating and 3 recovery rating to Firstlight Holdco Inc.'s non-fungible $50 million incremental add-on to its term loan B due 2025 (total of $528 million). The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

S&P said it expects the company to use proceeds from the add-on to partially pay down the outstanding $70 million balance on its revolving credit facility and for general corporate purposes.

In addition, the agency affirmed its B- rating on Firstlight's existing first-lien debt facilities. The company's revolver was upsized to $110.6 million from $75 million, and the maturity date was extended to April 2025 from July 2023.

“Because the transaction is leverage neutral, our B- issuer credit rating and stable outlook on Firstlight are unchanged,” S&P said in a news release.

“That said, we view the transaction favorably because it will improve the company’s liquidity position by increasing its revolver availability and extending the maturity.”

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