S&P rates Amphora, loan B

S&P said it assigned its preliminary B long-term issuer credit rating to Amphora Intermediate II Ltd., parent of Accolade Wines.

The outlook is stable.

At the same time, the agency assigned its preliminary B issue rating to the £301 million senior secured term loan B due 2025, with a recovery rating of 3, indicating an expectation of meaningful recovery (50%-70%; rounded estimate 55%) in the event of default.

Carlyle Group agreed to acquire Accolade Wines and will finance the deal with the proposed senior secured term loan B and the remainder with equity.

The agency said it forecasts that the company's debt structure under the new financial sponsor ownership should allow it to maintain an S&P-adjusted debt to EBITDA of 5.5x to 6x and an EBITDA interest coverage ratio close to 3x over the next 18-24 months.

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