S&P rates Teneo Global loan B

S&P said it assigned a B issuer credit rating to Teneo Global LLC, along with a B rating and 3 recovery ratings to the company's proposed $365 million first-lien senior secured credit facility.

Teneo Global is planning a debt recapitalization to fund its acquisition by CVC Capital Partners, S&P said.

Pro forma for the transaction, Teneo's adjusted debt leverage will increase to the mid-5x range as of March 31, 2019, the agency said.

The stable rating outlook reflects a view that Teneo's credit metrics will improve steadily over the next 12 months as the company continues to benefit from organic revenue and EBITDA growth, S&P said.

The agency said it expects that debt leverage will decline to the low-5x range and discretionary cash flow to debt will improve to the high single-digit percentage area by the end of 2020.

Teneo's high percentage of retainer-based fees and strong year-over-year client retention rates provide good visibility to future revenue and cash flow generation, S&P said.

© 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.