S&P affirms Visual Comfort

S&P said it affirmed its B corporate credit rating on Visual Comfort Group (VC GB Holdings Inc.).

The outlook is stable.

At the same time, the agency affirmed the B issue-level rating on the company's senior secured $595 million first-lien term loan maturing in 2025, which now includes a proposed $90 million add-on and extended maturity date.

The 3 recovery rating is unchanged, indicating expectations for meaningful (50% to 70%, rounded estimate 50%) recovery in the event of payment default.

S&P said it will withdraw the ratings on the company's $140 million second-lien term loan due 2025 once it is repaid.

The agency said it views the transaction as favorable to credit metrics as it will reduce gross debt by $49 million, reducing pro forma leverage from 6.1 times at year-end 2017 to within the 5.5 and 6 times range based on last-12-month adjusted EBITDA, offset by capitalization of operating leases.

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