S&P gives Victory Buyer, loans B-

S&P said it gave B- ratings to Victory Buyer LLC (Vantage Elevator Solutions) and its planned $85 million senior secured revolving credit facility, undrawn at close, and expected $525 million first-lien term loan. The recovery rating on the loans is 3. The company also plans to obtain a $210 million second-lien loan.

Ontario Teachers' Pension Plan Board agreed to acquire Vantage.

“Our B- rating on Vantage reflects its high initial S&P Global Ratings-adjusted leverage, niche position in the elevator parts market, and limited geographic footprint. Moreover, the company's scale is small relative to peers we rate similarly in the capital goods sector. Partially mitigating these weaknesses are its long-standing relationships with customers and good customer diversification, as well as its significant aftermarket exposure that carries higher margins due to the nature of the products,” S&P said in a press release.

“We expect reasonable deleveraging over the next 12-18 months given return-to-work and elevator modernization trends. For 2021, we expect Vantage's S&P Global Ratings-adjusted leverage to be above 10x,” the agency added. However, it sees Vantage lowering leverage below 9x over the next 12-18 months.

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.