S&P rates AVSC incremental loan B-

S&P said it assigned its B- issue-level rating and 3 recovery rating to AVSC Holding Corp.’s proposed $430 million non-fungible incremental first-lien term loan B due September 2026. The 3 recovery rating indicates an estimate of meaningful recovery (50%-70%; rounded estimate: 50%) to lenders in the event of a payment default.

“The company is also upsizing its existing revolving credit facility maturing in March 2023 to $135 million from $100 million currently, issuing incremental first-lien Canadian term loan of $85 million maturing in September 2026 and $76 million new secured debt (both unrated). The incremental debt does not affect our recovery ratings on AVSC’s existing debt as we continue to estimate that the holders of the company's secured and guaranteed debt will see recovery prospects in the 50%-70% range,” said S&P in a press release.

Proceeds will be used to support AVSC’s acquisition of Encore Event Technologies Inc.,

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