S&P rates Therma, loans B-

S&P said it assigned B- ratings to Refficiency Holdings LLC (Therma) and its $65 million first-lien revolving credit facility, a $370 million first-lien term loan, and a $75 million first-lien delayed-draw term loan. The recovery rating is 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

The Blackstone Group will use the proceeds to help acquire the company in a leveraged buyout. “Our ratings also reflect the elevated financial policy event risk of financial sponsor ownership, and our view that financial sponsors are likely to prioritize shareholder-friendly financial policies over debt repayment,” S&P said in a press release.

The outlook is stable. “The stable outlook reflects our expectation that Therma will achieve mid-single-digit percent annual organic revenue growth and stable S&P Global Ratings-adjusted EBITDA margins of about 10%. We expect Therma's adjusted leverage will remain in the mid-6x area over the next 12 months, while the company generates reported free operating cash flow (FOCF) of $5 million-$10 million,” the agency said.

© 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.