S&P rates LD Intermediate B; loans B+, CCC+

S&P said it assigned its B corporate credit rating to LD Intermediate Holdings Inc.

The outlook is stable.

The agency also assigned its B+ issue-level rating and 2 recovery rating to the company's senior secured credit facilities (co-issued by LD Lower Holdings Inc.), which consist of a $30 million revolving credit facility expiring in 2021 and $340 million term loan B maturing in 2023. The 2 recovery rating indicates an expectation for substantial recovery of principal (70% to 90%; lower half of the range) in the event of default.

In addition, S&P assigned its CCC+ issue-level rating and 6 recovery rating to the company's $125 million second-lien term loan expiring in 2024 (co-issued by LD Lower Holdings). The 6 recovery rating indicates an expectation for negligible recovery of principal in the event of default.

LD Intermediate is acquiring competitor Kroll Ontrack LLC for about $410 million.

"Our B rating on LD Intermediate Holdings is based on the combined company's pro forma leverage of roughly 7x and on its positioning in the relatively fragmented legal process outsourcing (LPO) market," S&P credit analyst Adam Lynn said in a news release.

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