S&P assigns BB+ to DigitalGlobe loan

S&P Global Ratings said it assigned its BB+ issue-level rating and 2 recovery rating to DigitalGlobe Inc.'s proposed senior secured credit facility, including a $200 million revolving credit facility maturing in 2022 and a $1.275 billion term loan B maturing in 2024.

The 2 recovery rating indicates an expectation for substantial (70%-90%; lower half of the range) recovery for lenders in the event of a payment default.

S&P said it expects the company will use the proceeds from the term loan to pay down its current outstanding revolver balance and refinance its existing $550 million term loan maturing in 2020 (approximately $530 million outstanding) and $600 million senior unsecured notes due in 2021.

“The BB corporate credit rating and stable outlook on DigitalGlobe remain unchanged since we expect the transaction will be leverage-neutral with pro forma net adjusted leverage in the low-3x area,” S&P said in a news release.

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