S&P hikes Resolute, rates loan B

S&P said it raised its ratings for Resolute Investment Managers Inc. to B from D and rated its new $350 million term loan due April 2027 B with a 3 recovery rating (50%-70%; rounded estimate 60%).

The upgrade follows the completion of a review, the agency said.

Earlier this week, the company announced it completed its recapitalization by exchanging its $535 million term loan due in April for the new loan and 86.5% of its common equity. Resolute also exchanged its $89 million second-lien term loan for the remaining 13.5% of equity.

“The B rating reflects Resolute's small assets under management (AUM) base and mixed investment performance, balanced by strong margins which support above-average profitability. We expect Resolute to maintain leverage of less than 5x going forward, and liquidity to remain adequate,” S&P said in a statement.

The outlook is stable.

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