S&P assigns B- to Navacord notes

S&P said it assigned its B- rating to Navacord Corp.'s planned $500 million of senior secured notes due 2030 to be issued by financing subsidiary Jones DesLauriers Insurance Management Inc. It also assigned a 3 recovery rating, indicating meaningful recovery (50%-70%; rounded estimate: 55%) in default.

All existing ratings, including the B- rating on Navacord Corp. and CCC senior unsecured debt rating, are unchanged by the new debt issuance, the agency said.

Navacord plans to use the proceeds to partially refinance, in conjunction with $80 million in new common equity from financial sponsor Madison Dearborn Partners, its term loan with a C$507 million paydown to C$440 million, and fund its acquisition pipeline. The company also plans to upsize its revolver to C$150 million from C$100 million and extend the maturity to December 2027.

The outlook is stable.

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