S&P gives Zebra Buyer, loan BB-

S&P said it assigned its BB- issuer credit rating to Zebra Buyer LLC. Concurrently, the agency gave a BB- issue rating to the company's first-lien senior secured facility, including a $170 million revolving credit line and $1.24 billion term loan. The recovery rating on the company's first-lien facility is 4, indicating an expectation for average (40%) recovery in default.

“Our ratings on Zebra Buyer LLC (d/b/a Wells Fargo Asset Management [WFAM]) are based on the company's long track record in the asset management industry, good investment performance, meaningful diversification (although a high proportion of AUM is currently concentrated in money market strategies), and solid distribution capabilities. These strengths are partially offset by the company's weak profitability metrics relative to peers, continued long-term net outflows in recent years, lack of locked-up assets under management (AUM), and sizable leverage pro forma for this transaction,” S&P said in a press release.

GTCR LLC and Reverence Capital Partners LP will use the loan to help them acquire WFAM through Zebra.

The outlook is stable.

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