S&P rates AutoTrader.com loan BB+

Standard & Poor's said it affirmed the BB+ issue-level ratings on AutoTrader.com's senior secured credit facilities, following the add-on of $100 million to the term loan A facility and a shift of $100 million from the $500 million term loan B to the term loan A facility. The recovery rating is 3, indicating meaningful (50% to 70%) recovery.

S&P assigned a BB+ issue-level rating to the incremental term loan A, with a recovery rating of 3 indicating the expectation of meaningful (50% to 70%) recovery for lenders in the event of a payment default.

The pro forma capital structure consists of a $400 million term loan B due 2016, $450 million of term loan A due 2015 and a $200 million revolving credit facility due 2015. The company plans to use $100 million of incremental term loan A proceeds, along with some revolver borrowings, to fund the $150 million acquisition of VinSolutions LLC. V

S&P also affirmed the BB+ corporate credit rating on AutoTrader.com. The outlook is stable.

The ratings reflect the expectation that AutoTrader.com's lease-adjusted leverage will decline over the next 24 months, as a result of EBITDA growth and modest debt repayment, the agency said. The ratings consider the expectation that the company will continue to maintain a satisfactory margin of compliance with financial covenants over the near-to-intermediate term.

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