S&P: Wand unchanged after add-on

Standard & Poor’s said it the B+ rating and 2 recovery rating on Wand Intermediate I LP’s first-lien term loan due 2021 and CCC+ rating and 6 recovery rating on its second-lien term loan due 2022 are unchanged following news of a $25 million add-on to each term loan.

The 2 recovery rating on the first-lien term loan 70% to 90% expected default recovery.

The 6 recovery rating on the second-lien term loan indicates 0 to 10% expected default recovery.

The company’s B corporate credit rating and stable outlook also are unchanged.

The company will use the proceeds from these add-ons to fund its acquisition of Kadel’s Auto Body LLC.

The ratings reflect the company’s economically resilient business model, S&P said.

However, the company’s aggressive expansion strategy and its relatively narrow scope, scale and diversity offset this resilience somewhat, the agency said.

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