...- Payment services provider Blackhawk Network Holdings Inc. is proposing to issue a $1.7 billion senior secured term loan facility due in 2029 to refinance its first-lien term loan that would otherwise go current in June 2024, repay $200 million of outstanding second-lien debt, and help fund its planned acquisition of Tango Card Inc. As part of the transaction, the company will also extend the maturity of its revolving credit facility to 2029 from 2025. - Even with roughly $150 million of incremental debt, we project Blackhawk's adjusted leverage will increase only slightly to about 5.5x, which is below our downgrade threshold at the current rating. We also anticipate the company will deleverage from these levels in subsequent quarters. - We assigned our 'B' issue-level rating and '3' recovery rating to Blackhawk's proposed $1.7 billion term loan. - At the same time, we affirmed our 'B' issuer credit rating on the company and our '###+' issue-level rating on its second-lien debt. - The...
