S&P gives Crash Champions, loans B-

S&P said it assigned B- ratings to Champions Financing Inc. operating as Crash Champions, and its planned $250 million revolving credit facility, a $650 million senior secured term loan, and $650 million in senior secured notes. The outlook is stable.

Crash Champions plans to refinance and consolidate the capital structures of Crash Champions and legacy New SK Holdings Inc., which was acquired in 2022.

“We expect Crash Champions to generate positive free cash flow in 2024. Following the consolidation, we expect to see material cash flow improvement as the company benefits from improved supplier contracts, labor stability, and debt servicing costs. Favorable market conditions and the company's strong relationship with insurance carriers have also led to stronger volumes. We also expect that one-time cash charges related to the integration process that hindered cash flow in 2023 will not recur,” S&P said in a press release.

The agency said it expects t the company will generate between $35 million and $45 million of FOCF in 2024, and between $20 million and $25 million in 2025.

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