S&P rates Apptis loan B+

Standard & Poor's said it assigned its B+ debt rating and 3 recovery rating to Apptis (DE) Inc.'s proposed $180 million senior secured bank facility, which will consist of a $30 million five-year revolver and a $150 million six-year term loan.

The agency said that the bank loan rating is B+, the same as the corporate credit rating, along with the 3 recovery rating.

At the same time, S&P said it affirmed its B+ corporate credit rating and negative outlook on Apptis.

Proceeds from the proposed bank facility will be used to repay existing debt, including an existing credit facility, $50 million of senior subordinated cash pay notes, a portion of Apptis' senior subordinated Holdco payment-in-kind notes and accrued PIK interest, according to the agency.

S&P said that the ratings reflect Apptis' relatively modest position in the highly competitive and consolidating government IT services market and high debt leverage.

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