S&P rates EGS loan B, notes CCC+

Standard & Poor's said it assigned a preliminary B issuer credit rating to Expert Global Solutions LLC, an intermediate holding company which will be the parent of Expert Global Solutions Inc., and be a guarantor of all debt.

The outlook is stable.

S&P assigned a preliminary B rating to EGS Inc.'s proposed $120 million revolving credit facility and $750 million senior secured bank loan. The preliminary recovery rating is 3, indicating expectation for 50% to 70% recovery.

In addition, S&P assigned a preliminary CCC+ rating to the company's proposed $300 million senior notes. The preliminary recovery rating is 6, indicating expectation for 0% to 10% recovery.

NCO, currently owned by the private equity firm One Equity Partners and co-investors, plans to acquire APAC, which is also owned by OEP, the agency said. At the same time, OEP will set up a new intermediate holding company, EGS, to hold all the stock of NCO, which will be concurrently renamed as EGS Inc.

As part of the merger, EGS Inc will issue new debt and repay NCO's existing debt, the agency noted.

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