S&P rates ION Trading CCR, loan B+

S&P said it affirmed its B+ long-term corporate credit rating on ION Trading Technologies Ltd., a wholly owned subsidiary of ION Investment Group Ltd.

The outlook is stable.

At the same time, the agency assigned its B+ long-term corporate credit rating to ION Trading's wholly owned financing subsidiaries ION Trading Technologies Sarl and ION Trading Finance Ltd.

In addition, S&P assigned its B+ issue rating to the company's proposed new €200 million first-lien term loan due 2023, in line with the rating on the company's existing first-lien term loan and its $40 million senior secured revolving credit facility.

The new term loan will be issued by the two financing subsidiaries. The 3 recovery rating on all first-lien debt instruments is unchanged, indicating an expectation of meaningful recovery in the event of a payment default, with recovery prospects in the lower half of the 50%-70% range.

Proceeds from the new loan will be used to repay a €37.5 million term loan taken over from the Lab49 acquisition and pay a dividend to ION Investment. S&P said the transaction will increase the company's S&P Global Ratings-adjusted debt-to-EBITDA ratio by about 1 time to about 5.9 times at year-end 2016, but it expects a quick deleveraging in the next 12 months thanks to continued EBITDA growth and free operating cash flow generation.

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