S&P gives Vistage B; facilities B, CCC+

S&P said it assigned a B corporate credit rating to Vistage International Inc. and affirmed the B corporate credit rating on Vistage Worldwide Inc.

Both outlooks are stable.

S&P also assigned a B issue-level rating to Vistage’s proposed first-lien senior secured credit facility, which consists of a $25 million revolving credit facility due 2023 and a $260 million term loan due 2025.

The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 60%) of principal in the event of a payment default.

Additionally, the agency assigned a CCC+ issue-level rating to Vistage’s proposed $100 million second-lien credit facility due 2026. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%; rounded estimate: 5%).

“The B corporate credit rating on Vistage reflects our expectation that the company will experience healthy revenue and EBITDA growth by further penetrating both domestic and international markets, while maintaining adequate liquidity and FOCF to debt ratio above 5%,” S&P said in a news release.

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