S&P assigns ARC Document loan B+

Standard & Poor's said it affirmed its B+ rating on ARC Document Solutions Inc.

The outlook is stable.

At the same time, the agency assigned the company's $205 million term loan a B+ issue-level rating, with a recovery rating of 3, indicating an expectation for meaningful (50%-70%) recovery in the event of a payment default.

The company will use proceeds to refinance its existing $188 million 10½% senior notes due 2016 and to pay for transaction costs. S&P will withdraw the rating on the senior notes once the transaction closes.

The B+ corporate credit rating on ARC reflects S&P's expectation that the company will be able to maintain moderate debt leverage and an adequate cushion of covenant compliance over the intermediate term.

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