S&P downgrades Consilio

S&P said it lowered its issuer credit rating on GI Revelation Acquisition LLC (Consilio) to B- from B. The outlook is stable.

At the same time, the agency lowered the issue-level rating on the company's first-lien debt to B from B+. The recovery rating remains 2, indicating an expectation of substantial recovery (70%-90%; rounded estimate: 70%) in the event of a payment default.

In addition, S&P lowered the issue-level rating on Consilio's second-lien term loan to CCC from CCC+. The recovery rating remains 6, indicating an expectation of negligible recovery (0%-10%; rounded estimate: 5%) in the event of a payment default.

The downgrade reflects increased leverage at Consilio, following the company's announcement it plans to add $150 million of incremental first-lien debt to fund its $170 million acquisition of DiscoverReady.

“We expect the company's equity sponsor to contribute $20 million. We expect the company's pro forma leverage to increase above 8x following the transaction and at year-end 2018,” S&P said in a news release.

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