S&P lowers UKG

S&P said it lowered UKG Inc.’s first-lien debt to B- from B per its notching criteria for the term loan and revolver recovery rating to 3 from 2. The 3 recovery rating indicates expectations of meaningful (50%-70%; rounded estimate: 65%) recovery in default.

“The rating actions reflect our view of UKG’s plan to increase the amount of its non-fungible first-lien term loan (in connection with the repricing) by $300 million to $3.24 billion,” S&P said in a press release.

UKG’s total debt is unchanged. The company will use the proceeds to repay its $900 million second-lien term loan, totaling $600 million at the transaction’s close.

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