S&P lifts Agiliti

S&P said it upgraded Agiliti Inc. to B+ from B and affirmed the B+ ratings on its first-lien debt. The agency revised the rating to 3 indicating an expectation for meaningful recovery in default. The recovery analysis reflects the recent full repayment of second-lien debt, as well as increased revolver size to $250 million.

The company used the proceeds from its recent initial public offering to fully repay its $240 million second-lien term loan, repay $80 million of first-lien term loan, repay the revolver balance and place cash on the balance sheet.

“The transaction results in leverage improving by roughly one and a half turns. We now expect that continued top-line growth, stable margins and the lower debt amount will enable the company to generate debt to EBITDA of about 4x in 2021,” S&P said in a press release.

The outlook is positive.

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