S&P assigns CCC to Aretec notes

S&P said it assigned its CCC rating to Aretec Group Inc.'s (B-/stable/--) new $400 million senior notes due 2029.

Aretec will use proceeds from the senior notes, along with $125 million of incremental term loan and $50 million in cash on hand, to fund its previously announced acquisition of certain assets related to the independent financing channel of Voya Financial Advisors from Voya Financial Inc. and repay the $190 million second-lien term loan.

“We believe the credit metrics – pro forma leverage (as measured by debt to covenant EBITDA) of 5.75x-6.25x in 2020, up modestly from our previous expectation of 5.5x-6.0x, and pro forma debt service coverage of 2.5x-3.0x – are still commensurate with the B- issuer credit rating,” S&P said in a news release.

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