S&P rates Luihn VantEdge loans B-, CCC

S&P said it assigned B- ratings to Luihn VantEdge Partners LLC and its planned first-lien credit facilities. The facilities’ recovery rating is 3. The agency also gave CCC issue-level and 6 recovery ratings to the proposed second-lien facility.

“We view the capital structure as highly leveraged, partially driven by the current acquisition, but expect the company will focus efforts on deleveraging. We expect adjusted leverage of 8x for 2021, declining to the mid- to high-7x area in 2022. We believe Luihn will pursue deleveraging as EBITDA expands from new unit developments and positive same store sales growth also leading to improved cash flow generation,” S&P said in a press release.

Luihn will use the loans to help it acquire 59 restaurants in the Southeast U.S.

The outlook is stable.

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