S&P affirms OEConnection loans

S&P said it affirmed its B- first-lien issue rating and CCC second-lien issue rating on OEConnection LLC's senior secured debt after the company completed a debt-neutral transaction.

The company increased its first-lien term loan by $25 million and reduced its second-lien term loan by the same amount.

The 3 recovery rating on the first-lien term loan reflects an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a default, and the 6 recovery rating on the second-lien term loan reflects negligible (0%-10%; rounded estimate: 5%) recovery.

The B- corporate credit rating and stable outlook are unchanged.

“Our ratings reflect our expectation that the firm's EBITDA will improve over the coming year, reducing leverage to the high-7x area by the end of the year from 9x at transaction close last year,” the agency said in a news release.

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