S&P rates Alorica loan BB

S&P said it assigned a BB- corporate credit rating to Alorica Inc.

The agency also said it assigned a BB rating and 2 recovery rating to the company's senior secured credit facilities, which include a $445 million term loan A, $225 million revolving credit facility and $450 million term loan B.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The outlook is stable.

Alorica signed a definitive agreement to acquire Expert Global Solutions LLC.

The proceeds of the debt issue will be used to pay off Expert Global's debt, pay fees and expenses and repay a portion of its existing revolver balance, S&P said.

The ratings reflect pro forma adjusted leverage in the mid-3x range, along with operations in the highly competitive and fragmented BPO industry, significant revenue concentration among its top customers and weak profitability relative to other telecom peers, the agency said.

The company's scale and solid free cash flow generation partially offset these factors, S&P said.

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