S&P rates Adtalem notes BB-

S&P said it assigned its BB- rating and 3 recovery rating to Adtalem Global Education Inc.'s proposed $650 million of secured notes due 2028. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery of principal in default.

Adtalem plans to use the proceeds from its notes and proposed term loan with cash on hand to fund the $1.48 billion acquisition of Walden University, refinance its debt, and pay transaction-related fees.

“We expect to lower our issuer credit rating on the company by one notch to BB- when it closes its acquisition of Walden University. Pro forma for the transaction, we estimate Adtalem's S&P Global Ratings-adjusted leverage will increase to about 4x from approximately 2.1x as of Dec. 30, 2020. We will withdraw our ratings on the company's existing debt facilities once it completes its refinancing and repays the debt,” S&P said in a press release.

© 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.