S&P lifts Vida Capital

S&P said it raised Vida Capital Inc.’s issuer and first-lien secured loan ratings to CCC+ from CCC. The recovery rating on the loans remains 4.

“Our upgrade reflects Vida's improved liquidity due to the capital contribution from its private-equity (PE) sponsors and the covenant waiver on its revolving credit facility. On June 29, 2022, the company's PE sponsors, Reverence Capital Partners and Red Bird Capital Partners, made a combined $30 million capital contribution, which enabled the company to meet its liquidity needs on the interest and debt amortization payments due June 30, 2022,” S&P said in a press release.

Vida and the lenders on its revolver also agreed to lower the revolver commitment to $30 million from $40 million and added a $7.5 million minimum liquidity test as part of the financial covenants starting on the fiscal quarter ending Dec. 31, 2023.

The outlook is stable.

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