S&P Athlaction on developing watch

S&P said it affirmed the B rating on Athlaction Holdings LLC and placed it on CreditWatch with developing implications.

The agency also said it affirmed the B+ rating on the company's first-lien term loan and revolving credit facility and placed it on CreditWatch developing.

The recovery rating remains at 2, indicating 70% to 90% expected default recovery.

S&P also affirmed the CCC+ rating on the company's second-lien term loan due in 2021 and placed it on CreditWatch developing.

The 6 recovery rating is unchanged and indicates 0 to 10% expected default recovery.

The CreditWatch placement reflects Vista Equity Partners' plan to divest Lanyon from Athlaction and merge it with Cvent Inc., a recently acquired portfolio company also focused on corporate event planning and management, S&P said.

Athlaction will need to either refinance its existing credit facilities or obtain a covenant waiver from lenders in conjunction with this transaction, the agency said.

S&P said it will monitor developments related to the potential divestiture and will resolve the CreditWatch listing when additional clarity about Athlaction's final capital structure is known.

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