S&P: SurveyMonkey loans B-

S&P said it assigned a B- rating and 3 recovery rating to SurveyMonkey Inc.'s proposed senior secured credit facility, which comprises a $300 million first-lien term loan B due 2024 and $75 million revolving credit facility due 2022.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The proceeds will be used to repay the amount outstanding under its existing term loan B and the amount drawn under its existing revolving credit facility, S&P said.

Pro forma for the transaction, SurveyMonkey will have about $50 million available under is proposed $75 million revolving credit facility, the agency said.

Leverage is expected to be unchanged at higher than 8x as of Dec. 31, 2016, S&P said.

The ratings reflect the company's highly leveraged business risk profile and minimal discretionary cash flow generation, the agency said.

But the company is expected to de-leverage slowly over the next 18- to 24-months due to EBITDA growth and some debt repayment, S&P said.

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