S&P reviews SourceHOV

S&P said it placed its CCC+ rating on SourceHOV LLC, as well as the ratings on the company's first-lien and second-lien debt, on CreditWatch with positive implications.

The agency also placed the CCC+ issue rating on SourceHOV's $75 million revolving credit facility and $780 million first-lien debt and the CCC- issue-level rating on its $250 million second-lien debt on CreditWatch with positive implications. The recovery rating on the revolving facility and first-lien debt is unchanged at 3, indicating an expectation for meaningful (50%-70%; rounded estimate 65%) recovery in the event of a payment default. The recovery rating on the second-lien debt is unchanged at 6, indicating an expectation for negligible (0%-10%; rounded estimate 5%) recovery in the event of a payment default.

"The CreditWatch placement follows the announcement that SourceHOV, Novitex Holdings Inc., and Quinpario Acquisition Corp. 2, the last of which is a publicly traded special purpose acquisition company, have agreed to a merger," S&P credit analyst Minesh Shilotri said in a news release.

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