S&P rates Alterra Mountain upsized loan B

S&P said it assigned a B rating with a 3 recovery rating to Alterra Mountain Co.’s proposed upsized $1.736 billion senior secured term loan facility due 2024.

The 3 recovery rating indicates S&P’s expectation for meaningful recovery (50%-70%; rounded estimate: 60%) of principal in the event of a payment default.

Most of the proceeds will be used to refinance its term loan facility. The company plans to use $50 million for an undisclosed acquisition, S&P said.

“We have modestly raised our valuation of Alterra in a simulated default scenario to reflect the tuck-in acquisition under its LOI, which partially offsets the $50 million increase in its term loan debt. Therefore, we assigned the same ratings to the new term loan facility as our ratings on its existing term loan facility,” S&P said in a press release.

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