S&P rates Millennium Trust loans B, CCC

S&P said it assigned a B- issuer credit rating to Minotaur Acquisition Inc., which does business as Millennium Trust Co.

The agency also said it assigned a B rating and 2 recovery rating to the proposed first-lien facility, along with a CCC rating and 6 recovery rating to the proposed second-lien facility.

Minotaur is being acquired by Abry Partners for $1.675 billion, S&P said.

The transaction debt financing includes a $90 million revolving credit facility due in 2024, $610 million first-lien term loan due in 2026 and $245 million second-lien credit facility due in 2027.

Following the transaction, pro forma adjusted leverage will be very high

in the mid-8x range, declining to the high-7x range in 2020, S&P said.

The stable outlook reflects an expectation that Millennium will de-leverage over time through earnings improvement driven by revenue growth in its automatic rollover individual retirement account (IRA) segment and secular tailwinds in the U.S. retirement savings industry, S&P said.

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