U.S.-based childcare center operator Bright Horizons Family Solutions LLC plans to put in place a new $815 million term loan and $100 million revolving credit facility. Proceeds will be used to refinance its existing $430 million in term loans, $300 million of 11.5% notes, and $75 million undrawn revolving credit facility. We are assigning the proposed $915 million senior secured credit facility our preliminary 'B+' rating with a recovery rating of '3'. At the same time, all other ratings, including the 'B' corporate credit rating on Bright Horizons Capital Corp., remain on CreditWatch with positive implications. If both the refinancing and planned IPO transactions are completed, we expect to raise the corporate credit rating to 'B+', subject to final terms.
