S&P rates DigiCert loan B-

S&P said it assigned its B- issue-level rating to DigiCert Inc.'s proposed $260 million first-lien term loan. The recovery rating is 3, which indicates an expectation of meaningful recovery (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

At the same time, S&P affirmed its CCC+ issue-level rating on the company's second-lien term loan, and S&P lowered the rating on the company's $15 million revolver to B- from B.

The corporate credit rating on the company is unchanged at B-. S&P said it will withdraw its rating on the existing $220 million first-lien term loan after the transaction closes.

DigiCert is planning to put all of the proceeds from the issuance toward paying down the existing first-lien loan and a portion of the second-lien loan.

“We view this as a leverage-neutral transaction that will lower the company's interest expense going forward,” S&P said in a news release.

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