S&P rates Servpro loan B+

S&P said it assigned a B+ rating to Servpro Borrower, LLC's first-lien credit facility, which includes a $45 million revolver and a $315 million term loan.

The recovery rating is 2, indicating 70% to 90% expected default recovery.

Servpro Borrower is being acquired by Blackstone Group LP for $1.3 billion, S&P said.

The agency said it expects adjusted leverage to be about 6.9x by year-end 2019, the agency said.

The ratings reflect the company's relatively small scale, narrow focus in the niche residential and commercial mitigation and reconstruction segment and highly fragmented and competitive industry dynamics, S&P said.

The ratings are constrained by Servpro's good market position and dense geographic coverage, which supports service delivery, high brand awareness and well established relationships with key insurance providers, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.