S&P rates LD notes B+

S&P said it rated LD Holdings Group LLC’s planned $500 million of senior unsecured notes B+. The recovery rating on is 4 indicating an average recovery (40%) in default. Concurrently, the agency affirmed LD’s B+ issuer rating and upgraded its outstanding $500 million of notes to B+ from B.

The rating affirmation follows LD's announcement it plans to raise $500 million of senior unsecured notes due 2028. It intends to use proceeds for general corporate purposes, paydown certain operating indebtedness and fund a special dividend.

The upgrade on LD’s notes is based on its growth in mortgage servicing rights to about $1.13 billion from $447.5 million in 2019 and the termination of LD’s second secured facility, S&P said.

The outlook is stable.

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