S&P rates Access CIG facilities B, CCC+

S&P said it revised its outlook on Access CIG LLC to negative from stable and affirmed its B corporate credit rating.

At the same time, the agency assigned a B issue-level rating to the company's proposed senior secured first-lien credit facility, which comprises a $60 million revolving credit facility due 2023, a $575 million term loan due 2025 and a $120 million delayed-draw term loan due 2025.

The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a default.

S&P also assigned a CCC+ issue-level rating to the company's proposed senior secured second-lien credit facility, which comprises a $215 million term loan due 2026 and a $40 million delayed-draw term loan due 2026. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%; rounded estimate: 0%).

Access CIG will use borrowings under the new first- and second-lien credit facilities to refinance its existing credit facilities.

The agency said the negative outlook reflects an expectation that Access will pursue its aggressive growth strategy driven by acquisitions, and use the delayed-draw facilities over the next 12 months to fund acquisitions at purchase multiples similar to prior acquisitions and for general working capital purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.