S&P lowers Alterra Mountain view to stable

S&P said it revised the outlook on Alterra Mountain Co. to stable from positive and affirmed its B corporate credit rating.

The agency also said it affirmed the B rating on its first-lien credit facility, which consists of a $225 million revolving credit facility due 2022 and an upsized $1.61 billion term loan B due 2024.

The upsizing incorporates the incremental term-loan of $50 million, S&P noted.

The first-lien debt has a recovery rating of 3, indicating 50% to 70% expected default recovery.

S&P also said it affirmed the first-lien debt's issue-level rating despite additional secured debt in the hypothetical default scenario because the agency said it modestly increased Alterra's emergence valuation to reflect the proposed acquisition.

The outlook revision reflects incremental leverage from the proposed Project Eagle acquisition, which is expected to result in pro forma adjusted debt-to-EBITDA in the low-6x range in the fiscal year ending July 31, the agency said, and in the high-5x range in fiscal 2019.

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