Fitch assigns Astra loans BB-, CCC+

Fitch Ratings said it assigned Astra Acquisition Corp.’s first-lien term loan a BB-/RR2 rating and the second-lien term loan a CCC+/RR6. The agency assigned a long-term issuer default rating of B to the company. The outlook is stable.

The rating actions follow the previously announced buyout of Campus Management Acquisition Corp. and EdCentric Holdings LLC by private equity firm Veritas Capital. The buyout will be funded with a new $325 million first-lien term loan, a $110 million second-lien term loan and new cash equity from Veritas. Both these entities are being rolled up into Astra. Astra provides integrated cloud-based solutions for enrolment management, alumni engagement, course evaluation and assessment and analytics to higher education institutions.

“Immediately following the closing of the buyout both companies will be combined resulting in material costs savings that will improve the EBITDA profile of the combined entity, bringing it in line with other pure-play SaaS providers in niche verticals,” said Fitch in a press release.

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