S&P gives Safeguard Purchaser, loans B-

S&P said it assigned B- ratings to Safeguard Purchaser LLC (Crime Prevention Institute), its $400 million term loan due 2031 and $35 million revolver maturing in 2029. The recovery ratings on the loan is 3, indicating meaningful recovery (50%-70%; rounded estimate: 55%) in a default scenario. The outlook is stable.

“The B- rating and stable outlook on CPI reflect our expectation that the company will continue strong revenue growth as demand for its services increases.

“CPI provides critical de-escalation and crisis prevention training to employees, primarily focused on educators and health care workers. CPI operates through a "train-the-trainer" model, in which it certifies select staff to become de-escalation and crisis prevention experts who teach the skills across their organizations. As workplace violence increases, in tandem with awareness of incidents and the negative impacts, we expect CPI will be well positioned to provide necessary training as the only nationally scaled crisis prevention provider,” the agency said in a press release.

The outlook reflects an expectation that CPI will continue its healthy revenue growth as demand for its training increases, and sustain debt to EBITDA of about 5x and free operating cash flow to debt above 5%, S&P noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.