S&P could up Advanstar, rates loans B+, CCC+

Standard & Poor's said it placed its CCC+ corporate credit rating on Advanstar Inc. on CreditWatch with positive implications.

At the same time, S&P assigned Advanstar's $320 million first-lien credit facility its B+ issue-level rating with a recovery rating of 2.

The facility consists of a $20 million revolving credit facility due 2018 and a $300 million term loan due 2019.

The agency also assigned Advanstar's $175 million second-lien term loan due 2020 its CCC+ issue-level rating with a recovery rating of 6.

Advanstar intends to use the proceeds, along with $95 million of preferred equity contributed by the financial sponsors, to refinance the existing debt at Advanstar and ENK International.

"The CreditWatch listing reflects our expectation that, following the proposed transaction, the new combined entity will grow organic revenue, reduce leverage, and maintain adequate liquidity," S&P credit analyst Dan Haines said in a news release.

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