S&P assigns Apex, loans B-

S&P said it assigned preliminary B- ratings to Apex Group Ltd. and subsidiaries Apex Group Treasury Ltd. and Apex Group Treasury US LLC. S&P also assigned preliminary B- issue and 3 recovery ratings to the group's planned $1.412 billion in term loans and $200 million revolver.

“Apex's fair business risk profile is supported by the group's leading position as a global fund administrator, and recurring revenue streams from a blue-chip client base. Although the group started at a relatively small scale and operates in a fragmented industry, Apex has grown rapidly since its inception in 2003, and now offers a breadth of services across its fund, financial, and corporate solutions,” S&P said in a press release.

Apex plans to refinance its capital structure and fund acquisitions with the proceeds.

The outlook is stable. “We expect margin accretion following the transaction, with a material improvement in margins by about 8-10 percentage points between 2020 and 2023, and leverage falling by eight turns for the same period,” the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.