S&P: HRG Group unchanged by add-on

Standard & Poor’s said the B+ rating and 2 recovery rating on HRG Group Inc.’s existing senior secured notes are unchanged by its upsizing to $704 million with a proposed $100 million add-on.

The 2 recovery rating indicates 70% to 90% expected default recovery.

All of the company’s other existing ratings, including its B corporate credit rating, are unchanged.

The outlook is stable.

The proceeds will be used for working capital at the holding company and by subsidiaries, as well as for general corporate purposes, S&P said.

The agency said it expects the company’s coverage metrics will remain weak and potentially volatile over the next two years, given the weak asset diversity, limited financial flexibility and a short track record with its stated investment strategy.

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