S&P rates Wellful add-on loan B

S&P said it assigned its B issue-level rating to Wellful Inc.'s, formerly known as KNS Acquisition Corp., $30 million incremental first-lien term loan. The recovery rating is 3, indicating meaningful recovery (50%-70%; rounded estimate: 65%) in default.

Wellful plans to use the add-on, balance sheet cash, revolver draws and an incremental $25 million second-lien loan to fund the $100 million purchase of two brands.

“We project this transaction to be slightly deleveraging, with pro forma adjusted leverage for last-12-months ending in the first-quarter 2022 decreasing to around 5.7x from 6x,” the agency said in a press release.

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