S&P assigns B to WellSky loan

S&P said it assigned its B issue-level rating and 2 recovery rating to the proposed $405 million incremental first-lien term loan issued by Project Ruby Parent Corp.'s (WellSky) subsidiary, Project Ruby Ultimate Parent Co. The 2 recovery rating indicates an expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of a default.

The company intends to use the proceeds from this incremental loan to refinance the existing $396 million incremental first-lien term loan it issued in 2022, likely at a lower interest rate, S&P said. WellSky is also extending the maturity of its existing $110 million revolver by 1.75 years to Dec. 10, 2027.

All of S&P’s other ratings on Project Ruby are unchanged.

“We view the transaction as favorable from a credit perspective because it will be essentially leverage neutral while improving the company’s pricing and extending its maturities,” S&P said in a news release.

© 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.