S&P gives Sedgwick loan B

S&P said it assigned its B issue rating to Sedgwick Claims Management Services Inc.'s proposed $300 million term loan due 2026. The recovery rating is 3, indicating an expectation for a meaningful (55%) recovery of principal in the event of default.

The agency also rates the existing first-lien term loans B, with a recovery rating of 3 (55%). The proposed term loan is expected to contain identical terms as the company's term loan B, S&P said.

“We expect Sedgwick to use this issuance to bolster liquidity amid heightened sector uncertainty from Covid-19-related business disruption. As of March 31, 2020, Sedgwick has $130 million in cash on its balance sheet, and $325 million remains available on its $400 million revolver,” S&P said in a press release.

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