S&P rates FFP B-, loans B-, CCC

S&P said it gave FFP Holdings Group Inc. and its planned $350 million senior secured first-lien term loan due 2028 B- ratings. The recovery rating on the loan is 3. The agency also assigned CCC issue and 6 recovery ratings to its $100 million second-lien term loan due 2029.

Ardian plans to buy a majority stake in FFP Holdings. Mid-Ocean Partners will hold the remaining stake.

“Our ratings on FFP reflect its sponsor ownership, aggressive financial policy, and high leverage pro forma for the transaction. We estimate pro forma S&P Global Ratings-adjusted leverage at transaction close will be around the mid-8x area. Given year-to-date performance, we expect low-teens percent revenue growth for the full year. This will be driven by volume growth, the contribution from last year's Amelia Bay acquisition, and close to 20% EBITDA growth in 2021, including a strong second half,” S&P said in a press release.

The outlook is stable.

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