S&P rates Zotec loan B-

S&P said it assigned a B- corporate credit rating to Zotec Partners LLC.

The agency also said it assigned a B- rating and 3 recovery rating to Zotec's proposed senior secured first-lien credit facility, consisting of a $20 million five-year revolving credit facility and a $305 million seven-year term loan.

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

The outlook is stable.

The stable outlook reflects expectations that the company's revenue will grow organically at a high-single-digit rate and its EBITDA margins will remain above average with leverage ranging between 5x to 7x, S&P said.

The agency also said it expects the company to generate modest free cash flow in 2018.

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