S&P trims Atlantic Aviation facility

S&P said it lowered its rating for Atlantic Aviation’s (Apple Bidco LLC) first-lien credit facility to B with a 3 recovery rating from B+ and 2, respectively.

The downgrade follows Atlantic’s plan to issue a $750 million incremental first-lien term loan to repay its $350 million second-lien term loan and fund a $385 million dividend to shareholders, S&P said. It cited weaker recovery prospects for lenders.

Last July, Atlantic secured a $325 million incremental first-lien term loan to fund acquisitions and pay $30 million in associated transaction fees and expenses. At that time, the agency affirmed the ratings on the facility at B+ with a 2 recovery rating, citing the company’s robust earnings growth since the 2021 leveraged buyout by KKR.

The outlook is stable.

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