S&P rates EP Global B, loans B+, CCC+

S&P said it assigned a B rating to EP Global Production Solutions LLC (Entertainment Partners), B+ and 2 recovery ratings to its planned $850 million first-lien term loan and CCC+ with 6 recovery ratings to its expected $200 million second-lien loan.

“Our ratings on Entertainment Partners are constrained by its high leverage following the transaction and its ownership by a financial sponsor. The transaction will fund a $285 million distribution to Entertainment Partners' shareholders, including its majority owner TPG, and we forecast leverage will be very high over the next two years, at close to 6x on average,” S&P said in a press release.

The outlook is stable, reflecting a forecast for revenue growth of about 10% in the next 12-24 months, the agency said.

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