S&P gives B to CoAdvantage facility

S&P said it gave B issue-level and 3 recovery ratings to AQ Carver Buyer Inc.'s (CoAdvantage) planned senior secured credit facility, including a $550 million senior secured term loan due 2029 and a $50 million revolving credit facility due 2028. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 50%) recovery if CoAdvantage defaults.

“Our B issuer credit rating on CoAdvantage and our stable outlook are unchanged. However, the proposed $85 million dividend would increase pro forma leverage and reduce the company's cushion at the B rating level. We now expect S&P Global Ratings-adjusted leverage in the low- to mid-6x area for 2023 and 2024, which is about 1x higher than previous forecasts. Still, we expect S&P Global Ratings-adjusted leverage will remain at least 0.5x below our 7x downgrade threshold for the rating,” the agency said in a press release.

CoAdvantage will use the proceeds to repay its debt and to fund an $85 million dividend to its owner.

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