S&P affirms Weld North after add-on

S&P said it affirmed Weld North Education LLC's B- issuer credit rating and B- issue-level rating on its first-lien credit facilities after it announced a debt-financed acquisition of Glynlyon Inc.

The company will fund the transaction with a $250 million add-on to its existing first-lien credit facility and a $75 million equity contribution from its private equity parent Silver Lake Partners, S&P said.

S&P said it expects the company's $55 million revolving credit facility to remain undrawn at the close of the transaction.

The ratings reflect an expectation that the company will continue to increase its revenue and earnings while integrating Glynlyon and stabilizing billings at the acquired company, S&P said.

The agency said it expects this growth will lead Weld North to sustain positive free operating cash flow of $20 million to $30 million annually after 2019, and $15 million in 2019, before transaction costs.

The company also is expected to maintain adequate liquidity despite its seasonal cash flow patterns, S&P said.

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