S&P gives Orbit B, facilities B+

S&P said it assigned preliminary B issuer ratings to Orbit Private Holdings I Ltd. and its financing subsidiaries Armor Holdco Inc. and Earth Private Holdings Ltd. The agency also assigned preliminary B+ issue and 2 recovery ratings to the group's senior secured facilities.

Orbit is the parent of the proposed merger of professional services providers Equiniti and AST. Financial sponsor Siris LLC will fund the deal via a $900 million senior secured term loan and $350 million of senior unsecured debt, supported by a $175 million senior secured revolving credit facility.

“While we anticipate that the new owners will enact cost efficiencies, we expect the cost of achieving the efficiencies will largely offset the benefits until 2023. Since the merger will be funded through the issuance of about £900 million of new debt, we expect debt to EBITDA to exceed 7x in 2022 and 2023, with healthy levels of free operating cash flow generation from 2023 onward,” S&P said in a press release.

The outlook is stable.

© 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.