S&P rates AVI-SPL, loan B

S&P said it assigned B ratings to A&V Holdings Holdco LLC and its proposed new $50 million senior secured revolving credit facility due 2025 and a new $370 million senior secured term loan due 2027. A&V is acquiring AVI-SPL Acquisitions LLC. The $50 million revolver will be undrawn at close.

“We expect that pro forma adjusted debt-to-EBITDA leverage (as defined by our criteria) will be around 4.9x at transaction close with little deleveraging over 2020. Absent transaction costs in the latest-twelve-month (LTM) period, leverage would be closer to the mid-4x range,” said S&P in a press release.

The outlook is stable. The stable outlook primarily reflects the combined entity's improved business position and S&P’s expectation it will maintain consistent near-term profitability with no material integration issues. It also reflects the expectation the company will realize roughly $25 million in synergies and improve profit margins.

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