S&P gives ZipRecruiter notes BB-

S&P said it gave BB- ratings to ZipRecruiter Inc. and its planned $500 million of senior unsecured notes. The agency also assigned a BB+ rating to the company’s $250 million senior secured revolver. The recovery rating on the notes is 3 and 1 on the revolver.

“Increased workforce turnover and a tight U.S. labor market will require employers and job seekers to adopt more efficient recruitment solutions. We believe there are favorable structural shifts occurring in the $200 billion U.S. job recruitment industry that will result in ZipRecruiter taking share from legacy online recruiters and traditional staffers. The increased churn in the U.S workforce, elevated job openings, and strong GDP and wage growth provide good operating conditions for ZipRecruiter to grow revenue in the 15%-20% range in 2022,” S&P said in a press release.

The company plans to use the proceeds for general corporate purposes.

The outlook is stable. S&P said it expects ZipRecruiter to maintain its adjusted debt leverage in the 3.5x-4x range.

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