S&P gives B to CareerBuilder loan

S&P said it assigned its B corporate credit rating to CareerBuilder LLC. The outlook is stable.

At the same time, S&P assigned a B issue-level rating and 3 recovery rating to the company's proposed $400 million senior secured first-lien credit facility, which consists of a $50 million revolving credit facility and a $350 million first-lien 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.

“Our corporate credit rating on CareerBuilder reflects the company's participation in the highly price-sensitive and competitive recruitment advertising and services marketplace. Pricing pressure and client losses have resulted in low-double-digit annual revenue declines in the company's core job advertising segment, lowering overall profitability and EBITDA margins,” S&P said in a news release.

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