S&P rates Greenhill loan BB

S&P said it assigned a BB debt issue rating to Greenhill & Co. Inc.'s proposed $360 million first-lien term loan due April 2024.

The proceeds will be used to refinance its existing $350 million first-lien term loan due 2022, which has an amortized balance of $320 million.

The recovery rating is 3, indicating 60% expected default recovery.

The new loan is expected to have terms similar to the existing loan, S&P said.

The proceeds will be used for general corporate purposes, which will likely include additional share repurchases.

As of December 2018, Greenhill had $320 million in gross debt from which $131 million of surplus cash was deducted and $40 million of operating lease liabilities was added to arrive at the $229 million adjusted debt balance, S&P said.

With $137 million in adjusted EBITDA, the company's debt-to-EBITDA ratio fell to 1.65x at the end of 2018, from 2.3x at December 2017, the agency said.

The company's outlook is stable, reflecting a view that Greenhill will operate with net debt-to-adjusted EBITDA of between 2x and 3x over the next 18- to 24-months, S&P said.

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