S&P rates Oasis loans B, CCC+

S&P said it affirmed the B corporate credit rating on Oasis Outsourcing Holdings Inc.

The outlook is stable.

The agency also said it assigned a B rating and 3 recovery rating to the company's first-lien $325 million term loan due 2023 and $60 million revolving facility due 2022.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ issue-level rating and 6 recovery rating to the company's proposed $85 million second-lien term loan due 2024.

The 6 recovery rating indicates 0 to 10% expected default recovery.

The ratings reflect an expectation that Oasis will successfully integrate the acquisition and reduce leverage to less than 7x at year-end 2017 and to the low-6x range by year-end 2018, the agency said.

The company will continue to generate healthy free operating cash flow of $20 million to $30 million annually, S&P said.

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