S&P rates VSTG, loan B

S&P said it gave B ratings to VSTG Acquisition Parent Corp. and its planned $445 million first-lien term loan and $50 million revolver. The recovery ratings on the loans are 3 (rounded estimate: 55%).

Gridiron Capital LLC plans to acquire Vistage Worldwide Inc. from Providence Private Equity via VSTG and use the term loan to help pay for it. VSTG also plans to borrow an unrated $135 million second-lien loan. S&P said it will withdraw Vistage’s ratings once its debt is repaid. The loans will be borrowed by subsidiary VSTG Acquisition Corp.

“The proposed debt issuance as part of the announced LBO will modestly increase the company's pro forma fiscal 2023 leverage but remain below our 7x downgrade trigger. Pro forma for the transaction, we anticipate the proposed debt issuances will modestly increase Vistage's pro forma (preliminary) leverage to the low-7x area from 5.2x, as of the 12 months ended March 31, 2022. However, we expect the company's leverage to decline to the mid-6x area in fiscal 2023 and low-6x area in fiscal 2024 based on our expectation of continued demand for the company's services coupled with corresponding increased pricing and debt paydown,” the agency 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.