S&P rates Convergint B-, facilities B, CCC

S&P said it assigned a B- corporate credit rating to Gopher Parent Inc. (Convergint Technologies).

The outlook is stable.

In addition, the agency assigned a B issue-level rating to the company's first-lien debt, consisting of a $75 million revolver due 2023, $535 million term loan B due 2025 and $40 million delayed draw term loan due 2025.

The 2 recovery rating indicates an expectation of substantial (70% to 90%; rounded estimate 70%) recovery in the event of default.

S&P also assigned a CCC issue-level rating to the company's second-lien term loan due 2026. The 6 recovery rating indicates an expectation for negligible (0% to 10%; rounded estimate 0%) recovery in the event of default.

The agency said the corporate credit rating reflects Convergint's high debt leverage, limited market share and geographic diversity and niche focus within the highly competitive and fragmented security and security systems integration market.

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