S&P: Micro Holding unchanged after add-on

Standard & Poor’s said the rating on Micro Holding Corp.’s first-lien term loan remains at B with a recovery rating of 3 following the company’s proposed $100 million add-on to the term loan.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The incremental term loan will have the same terms and maturity as the existing first-lien term loan, S&P said.

The proceeds will be used for general corporate purposes, including acquisitions, the agency said.

The corporate credit rating on Micro Holding remains at B with a stable outlook.

Pro forma for the proposed incremental term loan, adjusted debt leverage was high at 8.4x as of Dec. 31, S&P said.

But, based on an expectation of an organic growth rate of about 10% for 2015, the agency said it believes that adjusted debt leverage could decrease to near mid-5x by the end of 2015 in the absence of further debt-financed acquisitions.

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