Fitch turns Chamberlain view to negative

Fitch Ratings said it revised the outlook to negative from stable and affirmed the long-term issuer default rating of Chariot Holdings, LLC and Chariot Buyer LLC (Chamberlain Group) at B.

The agency also affirmed the expected B+/RR3 ratings on the upcoming first-lien senior secured revolver and term loan and the expected CCC+/RR6 ratings on the second-lien term loan.

The revision of the rating outlook to negative from stable reflects the higher than previously expected debt level that will be incurred as part of the acquisition of Chamberlain Group by Blackstone. Fitch expects pro forma total debt to operating EBITDA (based on Fitch adjustments) to be around 7.7x and for this ratio to decline to about 6.8x 24 months after the close of the transaction, which is modestly above Fitch's negative rating sensitivity of 6.5x. Fitch had previously expected leverage to settle around 6.5x by the end of 2023,” the agency said in a press release.

© 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.