S&P assigns Zuffa loan BB- rating

Standard & Poor's said it assigned its issue-level and recovery ratings to the proposed $100 million senior secured incremental term loan being issued by Zuffa LLC. The loan was rated BB- (at the same level as the corporate credit rating on the company) with a recovery rating of 4, indicating S&P's expectation of average (30% to 50%) recovery for lenders in the event of a payment default.

At the same time, S&P revised its recovery rating on Zuffa's existing senior secured credit facilities to 4 from 3.

"The revised recovery rating reflects a revision of our expected emergence multiple to 4.5x from 5.0x, in addition to the greater amount of debt outstanding in the capital structure," said S&P credit analyst Ben Bubeck in a news release.

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