S&P rates Explorer loans B, CCC+

Standard & Poor’s said it affirmed the B corporate credit rating on eResearch Technology Inc.

The agency also said it assigned a B corporate credit rating to Explorer Holdings Inc., a parent company of operating subsidiary eResearch Technology.

The outlook is stable.

S&P said it subsequently withdrew the corporate credit rating on eResearch Technology.

The agency also said it assigned a B rating and 3 recovery rating to Explorer’s proposed $540 million first-lien credit facilities, which include a $45 million revolving credit facility and a $495 million term loan.

The recovery rating is 3, indicating 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to the company’s proposed $220 million second-lien term loan. The 6 recovery rating indicates 0 to 10% expected default recovery.

The proceeds will be used to fund Nordic Capital’s purchase of the company, including repaying eResearch’s current debt, the agency said.

The agency said it expects to withdraw the existing issue-level rating on eResearch’s debt once it is repaid.

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