S&P rates New Constellis B-

S&P said it assigned a B- rating to New Constellis Borrower LLC with a stable outlook.

“At the same time, we are assigning our B+ issue-level and 1 recovery ratings to the company's new money priority first-lien exit facility, B issue-level and 2 recovery ratings to the first-lien term loan and CCC issue-level and 6 recovery ratings to the second-lien term loan,” S&P said in a press release.

“The rating reflects Constellis' new capital structure and continued business challenges. As part of the restructuring, Constellis was able to reduce over $1.3 billion of existing bank debt to $310 million of new bank debt, significantly reducing its leverage in the process. The transaction results in Constellis having ownership divided among several lenders, with its previous financial sponsor, Apollo Global Management, no longer significantly involved,” said S&P.

However, S&P said it forecasts debt to EBITDA to be near 8x this year before declining to 6.5x-7x in 2021.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.