S&P rates FCG loan B-

S&P said it assigned B- issue-level and 3 recovery ratings to FCG Acquisitions Inc.'s planned $150 million non-fungible incremental first-lien term loan. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 50%) recovery in default. The ratings are the same as S&P’s on the outstanding first-lien loans.

“This contemplated level of acquisitions is within the range we incorporated in our prior base-case scenario, thus the transaction does not materially alter our forecast for high S&P Global Ratings-adjusted debt leverage. Therefore, our B- issuer credit rating and stable outlook on the company are not affected,” the agency said in a press release.

FCG will use the proceeds, along with about $19 million of remaining capacity under its second-lien delayed-draw term loan facility, to fund nine acquisitions currently under letters of intent.

The outlook is stable.

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