S&P gives B- to RLG Holdings term loan

S&P said it assigned its B- issue-level rating and 3 recovery rating to RLG Holdings LLC's proposed $130 million nonfungible incremental first-lien term loan, the same rating as on the existing secured first-lien debt. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

The other ratings on the company remain unchanged, including the B- issuer credit rating, B- first-lien debt rating and the CCC second-lien debt rating.

“Our issuer credit rating on RLG reflects our expectation for improved financial performance through 2022 as supply chain challenges and product delays subside, resulting in EBITDA margin improvement. With the additional debt, we expect pro-forma leverage to remain between 7x-8x over the next 12-18 months,” S&P said in a news release.

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