S&P gives FullBloom, loans B-

S&P said it assigned B- ratings to ASP Dream Acquisition Co. LLC (FullBloom) and its expected $385 million first-lien term loan due 2028 and is $75 million revolver due 2026. The revolver is expected to be undrawn at close. The recovery rating for the loans is 3.

FullBloom also plans to secure an unrated $100 million second-lien term loan due 2029.

American Securities intends to fund its acquisition of FullBloom with the two term loans and common equity.

The agency said it gave FullBloom the B- to reflect its high leverage in the mid-7x range pro forma for the planned transaction, its small scale in a highly fragmented market, and a high degree of working capital seasonality.

The outlook is stable, indicating an expectation FullBloom will continue boosting revenue and EBITDA driven by emergency assistance for nonpublic schools funding and organic revenue growth, S&P said.

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