S&P upgrades Premiere Global after add-on

S&P said it raised the rating on Premiere Global Services Inc.'s first-lien term loan facilities – after a $115 million add-on – to B+ from B and revised the recovery rating to 2 from 3.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The upgrade reflects the lower amount of first-lien term loan debt in the capital structure following the company's decision to replace the originally proposed $140 million first-lien upsize with a lower amount of $115 million, S&P explained.

The proceeds from the upsized first-lien term loan, and a $50 million add-on to its second-lien term loan, will be used to fund a $100 million dividend to shareholders, repay $25 million of seller notes, repay $25 million under its revolving credit facility and related fees and expenses, the agency said.

The corporate credit rating on Premiere Global Services remains at B with a stable outlook because adjusted debt leverage is expected to be in the low-5x range.

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