S&P rates Sweetwater Borrower, loan B

S&P said it assigned B ratings to Sweetwater Borrower LLC and its planned $638.5 million senior secured term loan due in 2028.

The proceeds will be used to partially fund the acquisition of Sweetwater by Providence Equity Partners.

“We expect Sweetwater's leverage will be elevated after the transaction, with modest improvement this year because of earnings growth. We project Sweetwater's S&P Global Ratings-adjusted leverage in the mid-6x area in 2021, declining to the low-6x area in 2022. We anticipate the company will improve its operating performance over the next 12 months, supported by modest growth in its customer base. We believe this will help lead to a low double-digit increase in sales for 2021, following approximately 40% revenue growth in 2020,” S&P said in a press release.

The outlook is stable.

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