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S&P affirms Sterling after add-ons
Standard & Poor’s said it affirmed the B rating on Sterling Midco Holdings Inc.’s existing $329 million first-lien term loan due 2022 following its proposed $120 million add-on.
The recovery rating on the first-lien loan is 3, indicating 50% to 70% expected default recovery.
S&P also said it affirmed the CCC+ rating on the existing $120 million second-lien term loan due in 2023 following its proposed $20 million add-on.
The recovery rating on the second lien is 6, indicating 0 to 10% expected default recovery.
The company will use the additional debt to fund the acquisition of TalentWise, the agency said.
All of the existing ratings on the company, including the B corporate credit rating, are unchanged.
The outlook is stable.
Pro forma for the proposed financing, total debt outstanding is about $601 million, S&P said.
The ratings reflect its strengthening market position in the highly fragmented domestic employment- and background-screening industry, S&P said.
The acquisition is viewed as a credit positive, the agency added.
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