Fitch rates Chamberlain loans B+, CCC+

Fitch Ratings said it gave expected B+/RR3 ratings to planned first-lien senior secured revolver and term loan to be borrowed by Chariot Buyer LLC (Chamberlain Group). The agency also assigned CCC+/RR6 ratings to its planned secured second-lien term loan. Concurrently, Fitch gave Chariot Holdings, LLC and Chariot Buyer B issuer ratings.

“Chariot's B IDR reflects the high expected leverage following the close of the acquisition of Chamberlain Group by the Blackstone Group, the company's strong profitability and FCF margins, its solid overall position in the value chain, and diversified end-market exposure. Fitch's expectation of relatively stable housing and repair and remodel environment, combined with modest improvement in commercial construction activity in 2022 and realization of cost savings and synergies in the next 12-24 months supports modest deleveraging in the intermediate-term through EBITDA growth and FCF allocated to debt reduction,” the agency said in a press release.

The expected ratings are predicated on Blackstone completing the acquisition and the planned financing activities, Fitch said.

The outlook is stable.

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