S&P rates On Assignment loan BB, view negative

Standard & Poor’s said it affirmed the BB corporate credit rating on On Assignment Inc. and revised the outlook on the company to negative from stable.

The agency also said it assigned a BB rating and 3 recovery rating to On Assignment’s proposed $975 million senior secured credit facility, which consists of a $100 million revolving credit facility due 2020 and an $875 term loan B due 2022.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The agency also said it plans to withdraw the BB+ rating on On Assignment’s existing senior secured credit facility once the debt is repaid.

The outlook revision to negative reflects an expectation that the company’s leverage will increase to the high-3x range following the Creative Circle acquisition and that leverage will remain at more than 3x into 2016, S&P said.

The acquisition pushes On Assignment’s leverage to more than the 3x threshold for the BB, the agency said.

S&P also said the negative outlook indicates the execution risk associated with the transaction.

© 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.