S&P rates Dolphin Merger loans B, CCC+

Standard & Poor’s said it affirmed all of the ratings on AssuredPartners Capital Inc.

The outlook is stable.

The agency also said it assigned a B corporate credit rating to Dolphin Merger Sub Inc., a new entity formed in conjunction with the proposed debt transaction that will be merged into the existing AssuredPartners Inc. shortly following the close of the transaction.

Dolphin will issue all debt related to the transaction, S&P said.

S&P also said it assigned a B debt rating with a 3 recovery rating, indicating 50% to 70% expected default recovery, to Dolphin’s proposed senior secured credit facilities, consisting of a $762.0 million first-term loan due 2022 and $127.5 million revolver due 2020.

The agency also said it assigned a CCC+ debt rating with a 6 recovery rating, indicating 0 to 10% expected default recovery, to the company’s proposed $337 million second-lien term loan due 2023.

Although the proposed recapitalization under Apax Partners LLP results in weaker credit-protection measures relative to pre-existing trends, AssuredPartners sustained competitive position and improving earnings and cash-flow generating capabilities, S&P said.

This will enable the company to carry the increased debt load, the agency said.

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