S&P rates AHF, loan B

S&P said it gave B ratings to AHF Parent Holding Inc. and its planned $215 million term loan. The recovery rating on the loan is 3.

Paceline Equity Partners plans to acquire AHF with the loan and a cash contribution.

“AHF has limited product diversity and lower profitability than peers. Due to the inherent volatility of the housing market, singular product focus and smaller scale, we believe the company could be more susceptible to a downturn in the sector. AHF offers primarily hardwood flooring products (90% of sales) to residential end markets, commanding the No. 1 position in solid wood flooring and No. 2 in engineered wood flooring,” S&P said in a press release.

The agency said it forecasts about a 5%-10% increase in adjusted EBITDA through 2022 from estimated year-end 2021 and roughly 10% increase in revenues in 2022 due to backlog end-market demand and continuation of synergies through recent acquisitions.

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.