S&P rates Aptos parent, loan B-

S&P said it assigned B- ratings to Aptos parent Aspen Jersey Topco LLC and its proposed $300 million first-lien term loan due 2027 along with a recovery rating of 3. The 3 recovery rating indicates the expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of default.

Aspen Jersey, created by a Goldman Sach private equity fund, is acquiring Aptos. The term loan will be used to partially finance the acquisition. Aspen Jersey also proposes issuing a $40 million revolver.

“The acquisition of Aptos by Goldman Sachs' merchant banking division from current sponsor Apax Partners, is viewed as a financial transaction and does not alter our view of Aptos' competitive position and overall business risk. Our assessment of Aptos continues to be constrained by its small scale, narrow end-market focus (exclusively retail), and relatively low recurring revenue base,” said S&P in a press release. Pro forma leverage at the close of the transaction is forecasted to be 8.4x.

The outlook is stable.

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