S&P assigns Alterra loan B

S&P said it assigned a B rating with a 3 recovery rating to Alterra Mountain Co.’s proposed $400 million term loan to provide added liquidity.

The agency affirmed the B ratings on Alterra and its $450 million first-lien revolver due 2022 and first-lien term loan due 2024 (about $1.73 billion outstanding as of January).

“This debt will have a 3 recovery rating, but we are lowering the weighted average recovery to 50% because of the proposed incremental secured debt in the capital structure,” said S&P in a press release.

S&P revised the outlook to negative from stable.

“The negative outlook reflects significant uncertainty around the company’s revenue and cash flow during its 2020-2021 ski season and the possibility that leverage could increase above our mid-7x downgrade threshold,” the agency said.

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