S&P rates Duff & Phelps’ Deerfield Dakota loan B

S&P said it revised its outlook on Duff & Phelps to stable from negative and affirmed the B issuer credit rating.

U.S.-based business consulting firm Deerfield Dakota Holding LLC (Duff & Phelps) is borrowing an incremental $280 million senior secured first-lien term loan to fund its acquisition of Prime Clerk LLC.

S&P also assigned a B issue-level rating and 3 recovery rating to the proposed senior secured term loan.

In addition, the agency affirmed its B issue-level rating and 3 recovery rating on the company's existing senior secured credit facility.

“The outlook revision to stable reflects our view that the company will be able to reduce and maintain its adjusted debt leverage under 6.5x and free operating cash flow to debt above 5% in 2019. The pro forma 6.7x adjusted debt leverage as of Dec. 31, 2018, excludes about $60 million of one-time transaction costs from recent acquisitions, which we expect to roll off by the second quarter of 2019,” S&P said in a news release.

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