SVP Holdings LLC's First-Lien Term Loan Rated 'B-' (Recovery: '3'); Second-Lien Term Loan Rated 'CCC' (Recovery: '6')

TORONTO (S&P Global Ratings) June 15, 2022--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to SVP Holdings LLC's proposed senior secured first-lien term loan ($140 million). At the same time, we assigned our 'CCC' issue-level rating and '6' recovery rating to the second-lien term loan ($110 million). We expect the company will use the proceeds to fund acquisitions, related fees and expenses, and other corporate purposes. We view the transaction as consistent with our expectation of an aggressive inorganic growth strategy while still generating positive free cash flow. In our recovery analysis, we think the transaction provides slightly higher recovery to the first lien tranche primarily due to the greater proportion of second-lien debt. Both

...- General Criteria: Group Rating Methodology, July 1, 2019 - Criteria | Corporates | General: Corporate Methodology: Ratios And Adjustments, April 1, 2019 - General Criteria: Methodology For Linking Long-Term And Short-Term Ratings, April 7, 2017 - Criteria | Corporates | General: Recovery Rating Criteria For Speculative-Grade Corporate...

Ratings Action