S&P gives B to ConvergeOne loans

S&P said it affirmed its B corporate credit rating on C1 Investment Corp.

The outlook is stable.

At the same time, the agency assigned its B issue-level rating to ConvergeOne Holdings Corp.'s $335 million first-lien term loan due 2023 and $50 million revolving facility due 2021 with a 3 recovery rating (50%-70%, lower half of the range), and a CCC+ issue-level rating on the company's $100 million second-lien term loan due 2024 with a 6 recovery rating (0%-10%).

"The rating affirmation reflects our expectation that ConvergeOne's adjusted leverage will remain below the mid-6x area over the next year and that operating performance will continue to improve as the company integrates recent acquisitions," S&P credit analyst Dee Banson said in a news release.

The company's plan to refinance its existing capital structure to fund a dividend will result in a little more than $100 million of incremental debt, leading to adjusted leverage in the low 6 times area up from around the high 4 times area at June 30, S&P said.

© 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.