S&P: Access CIG unchanged after add-on

Standard & Poor’s said the B rating and 3 recovery rating on Access CIG LLC’s senior secured first-lien credit facility is unchanged following news that the company plans to issue a $50 million add-on to its senior secured first-lien term loan B due 2021.

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

The CCC+ issue-level and 6 recovery ratings on the senior secured second-lien term loan also are unaffected.

The proceeds will be used from the add-on to pay down the existing balance on its revolver and for general corporate purposes, S&P said.

Pro forma for the debt issuance, lease-adjusted leverage will marginally increase to about 6.6x from 6.4x as of the end of 2014, the agency said.

The company’s B corporate credit rating and stable outlook reflect that the company will achieve low- to mid-single-digit percent organic revenue growth with a relatively stable EBITDA margin, S&P said.

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