S&P rates Ascensus parent B-

S&P said it gave AqGen Ascensus, Inc.’s new parent holding company AqGen Island Holdings, Inc. a B- issuer rating. The rating is the same as the agency’s for Ascensus. The agency will discontinue all ratings on AqGen Ascensus, Inc. following the proposed acquisition and repayment of debt.

Stone Point Capital and sovereign wealth fund GIC will acquire the company through a leveraged buyout, which S&P said was approximately leverage neutral. Current owners Genstar Capital and Aquiline Capital Partners are expected to retain a minority stake.

S&P said it assigned B- issue-level and 3 recovery ratings to the company's proposed first-lien credit facility, which will include a $175 million revolving credit facility due 2026 and a $1.05 billion first-lien term loan due 2028.

S&P also assigned CCC issue-level and 6 recovery ratings to the planned $450 million second-lien term loan due 2029.

The outlook is stable, reflects an expectation Ascensus will maintain its solid operating performance in 2021 with mid-single-digit percent organic revenue growth, steady adjusted EBITDA margins and reported free operating cash flow (FOCF)-to-debt of 2% to 3%, the agency said.

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