S&P rates AqGen loans B, CCC+

Standard & Poor’s said it assigned a B corporate credit rating on AqGen Island Intermediate Holdings Inc.

The agency also said it assigned a B rating to the company’s proposed first-lien credit facilities, including a $50 million revolving facility due 2020, $400 million term loan due 2022 and $25 million delayed-draw term loan,

S&P also said it assigned a CCC+ rating to the proposed $170 million second-lien term loan due 2023.

The recovery rating on the proposed first-lien facilities is 3, indicating 50% to 70% expected default recovery.

The recovery rating on the proposed second-lien facility is 6, indicating 0 to 10% expected default recovery.

The outlook is stable.

The loans will be used to partially finance Genstar Capital Partners and Aquiline Capital Partners’ acquisition of the company, S&P said.

The ratings reflect the company’s leveraged financial condition upon completion of the acquisition, the agency said.

S&P said the ratings also consider the company’s leading position in the 529 Plan market, as well as the strong service offering provided to institutional asset managers.

The ratings also reflect the company’s good market position, scalable operating model, diversified client base, revenue visibility and client-retention experience, the agency said.

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