S&P cuts CoreLogic, rates loans B, CCC+

S&P said it lowered its issuer credit rating on CoreLogic Inc. to B from BB. The outlook is stable.

S&P also assigned a B issue-level rating and 3 recovery rating to CoreLogic's proposed $4 billion first-lien term loan and $500 million revolver. Additionally, the agency assigned a CCC+ issue-level rating and 6 recovery rating to CoreLogic's proposed $750 million second-lien term loan.

Stone Point Capital and Insight Partners, private equity sponsors, are acquiring CoreLogic for about $7.9 billion, excluding transaction fees.

Funding for the leveraged buyout includes $4.75 billion of debt, which will increase pro forma adjusted leverage at transaction close to around 7x from 3.5x at the end of 2020, S&P noted.

“In our view, the financial sponsor ownership, as well as leverage around 7x in 2021, are indicative of a more aggressive financial policy,” S&P said in a news release.

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