S&P lifts Penton, rates loans B, CCC+

Standard & Poor's said it raised its corporate credit rating on Penton Business Media Holdings Inc. to B from B-. The outlook is stable.

At the same time, S&P assigned Penton's proposed $570 million first-lien credit facilities an issue-level rating of B, with a recovery rating of 3, indicating an expectation for meaningful (50%-70%) recovery for lenders in the event of a payment default.

The facility consists of a $50 million revolving credit facility due 2018 and a $520 million first-lien term loan due 2019.

In addition, S&P assigned the proposed $150 million second-lien term loan due 2020 an issue-level rating of CCC+ (two notches below the corporate credit rating), with a recovery rating of 6, indicating an expectation for negligible (0%-10%) recovery for lenders in the event of a payment default.

The company plans to use proceeds to refinance its credit facilities and pay related transaction costs.

S&P said the upgrade reflects the elimination of near-term refinancing risk and S&P's expectation that Penton will continue to generate discretionary cash flow, maintain adequate liquidity, and reduce debt leverage through EBITDA growth and modest debt payment over the intermediate term.

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