S&P rates West loan BB+, notes B+

Standard & Poor's said it affirmed all existing ratings, including the BB- corporate credit rating, West Corp.

The outlook is stable.

At the same time, the agency assigned the company's issued $350 million senior secured term loan A due 2019 an issue-level rating of BB+ (two notches above the BB- corporate credit rating on the company) with a recovery rating of 1, indicating an expectation for very high (90% to 100%) recovery for bondholders in the event of a payment default.

S&P also assigned the company's issued $1 billion senior notes due 2022 its issue-level rating of B+ (one notch below the BB- corporate credit rating) with a recovery rating of 5, indicating an expectation for modest (10% to 30%) recovery for bondholders in the event of a payment default.

The company will use the proceeds from the notes, the term loan, and some additional credit revolving capacity to refinance its existing senior bonds, repay a portion of its term loan B and fund the acquisition of Health Advocate Inc.

S&P said the rating reflects its expectation that leverage will remain relatively high, in the 4x to 5x area over the intermediate term, as the company will continue its acquisition-oriented growth strategy, albeit under a less aggressive financial policy.

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