Fitch raises Red Ventures loans

Fitch Ratings said it affirmed the issuer ratings of Red Ventures Holdco, LP, Red Ventures, LLC and New Imagitas, Inc. at B+, and upgraded the senior secured revolver and term loan, co-borrowed by Red Ventures, LLC and New Imagitas to BB+/RR1 from BB/RR2.

“The upgrade of the senior secured debt ratings reflects Fitch's improved recovery expectations following Red Ventures' recent acquisition of Healthgrades.com. The updated recovery analysis considers the additional enterprise value of Healthgrades.com in a recovery scenario, while the amount of assumed senior secured debt is unchanged,” the agency said in a press release.

Red Ventures' gross leverage will climb to 5.4x from 4.7x due to a significant draw on the revolver to fund the acquisition.

“However, Fitch expects the company will continue to generate significant FCF, which will be used to reduce debt and bring leverage below 5x by YE 2021. Red Ventures' strong track record of debt reduction after large-scale debt funded acquisitions gives Fitch confidence in the deleveraging path back to the company's 3x-4x leverage target range,” the agency said.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.