S&P assigns B+ to Alterra loans

S&P said it assigned B+ issue-level and 3 recovery ratings to Alterra Mountain Co.'s planned $500 million term loan B and revolving credit facility. The 3 recovery rating indicates average (50%-70%; rounded estimate: 50%) recovery in default.

“While the proposed facilities modestly reduce the recovery prospects for the company's existing term loan lenders, the change is not significant enough for us to lower our B+ issue-level rating or revise our 3 recovery rating on its secured debt,” S&P said in a press release.

“Because of the additional secured debt, we modestly revised our rounded recovery estimate for its existing lenders to 50% from 60%,” S&P added.

Alterra will use the proceeds to refinance about $310 million of term loans due in 2024 and for general corporate purposes, including payments associated with its management incentive program that have accrued over the past six years.

The outlook is stable.

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