S&P rates Advantage Sales loan BB-

S&P said it assigned BB- issue and 2 recovery ratings to Advantage Sales & Marketing Inc.’s $1.3 billion first-lien term loan facility maturing in 2027. The company wants to amend or refinance its $1.3 billion facility.

Concurrently, the agency raised parent Advantage Solutions Inc.’s issuer rating to B+ from B. S&P also raised the rating on the $775 million of senior secured notes due 2028 to BB- from B. The recovery rating on the term loan and notes is 2 indicating that creditors could expect substantial (70% to 90%; rounded estimate: 70%) recovery in default, compared to 3 on the existing senior secured debt.

“We also withdrew our B issuer credit rating on ASM and expect to withdraw our B rating on the existing first lien term loan following its repayment,” S&P said in a press release.

“We expect Advantage's satisfactory financial performance to continue over the next year given still elevated demand for its sales services and rebounding demand for its demo-focused marketing services. Advantage has fared well over the past year, with trailing 12-month S&P Global Ratings-adjusted leverage strengthening to 4.2x from about 5x pro forma for last year's merger with special-purpose acquisition company (SPAC) Conyers Park II Acquisition Corp.,” the agency said.

The outlook is stable.

© 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.