S&P gives B to Arches Buyer term loan

S&P said it assigned its B issue-level rating and 3 recovery rating to Arches Buyer Inc.'s $1.6 billion senior secured term loan. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery of principal in the event of a payment default.

Arches Buyer plans to use the proceeds from this loan to refinance its existing senior secured credit facility.

“We view the transaction as leverage neutral and expect the company to save about $15 million on its annual interest cost,” S&P said in a news release.

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