Fitch cuts Chamberlain first-lien loans

Fitch Ratings said it downgraded the first-lien facilities, including the revolving credit facility, existing first-lien term loan, and the planned incremental first-lien term loan of the Chamberlain Group (Chariot Buyer LLC and Chariot Parent LLC) to B-/RR4 from B/RR3.

The agency had previously assigned B/RR3 ratings to the incremental first-lien term loan and affirmed the B/RR3 ratings on the revolving credit facility and existing first-lien term loan on Tuesday when the proposed incremental loan was initially announced.

“The downgrade of the facility ratings reflects the higher-than-expected amount of the incremental first-lien term loan, which is expected to be upsized to $775 million from the initial amount of $625 million. The downgrade of the recovery rating to RR4 from RR3 incorporates the diminished recovery coverage due to the meaningfully greater amount of first-lien debt than previously expected.,” Fitch said in a press release.

The proceeds will be used to repay the $600 million second-lien term loan and the rest for general corporate purposes.

The outlook is stable.

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