S&P rates Aptos loans B-, CCC

S&P said it affirmed its B- corporate credit rating on Aptos (Cayman) LP. The outlook is stable.

At the same time, the agency assigned its B- issue-level rating to the company's $260 million first-lien credit facilities, which consist of a $230 million first-lien term loan and a $30 million revolver.

The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in the event of payment default.

The agency also assigned its CCC issue-level rating to the company's $100 million second-lien term loan. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 5%) recovery.

Aptos plans to use proceeds from the facilities to repay and retire its existing $300 million first-lien term loan and pay its $20 million revolver balance.

S&P said the rating on Aptos reflects pro forma leverage in the mid-7x area at transaction close and an expectation for free cash flow as a percentage of debt to remain in the low single-digit area.

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