S&P rates Creative Circle loans B+, CCC+

Standard & Poor's said it assigned a B corporate credit rating to Creative Circle LLC.

The agency also said it assigned a B+ ratings to Creative Circle LLC's proposed $200 million senior secured credit facilities.

The credit facilities consist of a $150 million first-lien term loan due 2020, $15 million first-lien revolving credit facility due 2019 and $35 million second-lien term loan due 2021.

The loans are one notch higher than the company's corporate credit rating. The loans have a recovery rating of 2, indicating 70% to 90% expected default recovery.

S&P also said it assigned a CCC+ rating to the second-lien loan with a recovery rating of 6, indicating 0 to 10% expected default recovery.

The outlook is stable.

The proceeds will be used to refinance the company's unrated credit facilities and pay a special dividend to its shareholders, the agency said.

The ratings reflect the company's weak business risk profile and aggressive financial risk profile, S&P said.

The ratings also consider the company's relatively small size and niche market position in the highly competitive and fragmented staffing industry, risks related to its rapid organic growth and the vulnerability of its revenue to economic cycles, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.