S&P gives ENC, facility B

S&P said it assigned its B corporate credit rating to ENC Holding Corp.

The outlook is stable.

At the same time, the agency assigned its B issue-level rating to the company's proposed first-lien credit facility, which consists of a $238.5 million first-lien term loan and a $24 million delayed-draw term loan.

The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a default.

Proceeds from the facility will be used to fund a $46.6 million shareholder distribution and refinance existing debt.

S&P said the ratings reflect an expectation that the proposed recapitalization will weaken its credit metrics, though the agency expects them to improve modestly on higher earnings going forward.

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