Fitch gives Encino notes B

Fitch Ratings said it assigned B/RR4 ratings to Encino Acquisition Partners Holdings LLC’s proposed $750 million of senior unsecured notes and revised Encino’s outlook to stable from negative.

Concurrently, the agency affirmed the B ratings on Encino and Encino Acquisition Partners, LLC and the second-lien term loan rating at B/RR4.

The proceeds will be used to repay the second-lien term loan and reduce borrowings under the reserve-based credit facility. The transaction would extend the debt maturity runway from four to eight years and provide Encino with greater flexibility to extend its revolver maturity due in 2023. Also, Fitch said it expects Encino’s liquidity to be improved by about $180 million to $503 million.

“The stable outlook reflects Fitch's view that the proposed refinancing has materially reduced the company's refinancing risk while enhancing liquidity,” the agency said in a press release.

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