S&P: SG Acquisition loan B

Standard & Poor’s said it affirmed the B long-term corporate credit rating on SG Acquisition Inc.

The outlook is stable.

The agency also said it assigned a B rating to the proposed $210 million senior secured term loan and $15 million revolver. The recovery rating is 3, indicating 50% to 70% expected default recovery.

The proceeds will be used to refinance its existing term loan. S&P said it expects essentially no change in total debt outstanding and for pro-forma debt leverage to be near 5x.

The ratings reflect the company’s fair business profile due to its narrow focus on the ancillary finance and insurance market, small revenue base and client concentration, the agency said.

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