S&P rates Everise loans B-

S&P said it assigned B- issue-level and 3 recovery ratings to BCP V Everise Acquisition LLC’s planned $90 million revolving credit facility and $425 million term loan.

The agency said it also affirmed Everise’s B- issuer rating but revised the outlook to positive from stable.

Brookfield Asset Management and other sellers have sold 47% of their equity stake in Everise to Warburg Pincus LLC for about $1 billion. Brookfield and Everise management will roll 47% and 6% equity stakes respectively.

“We expect operating performance improvement driven by solid demand for outsourced customer relationship management. We forecast revenue growth in the low-single-digit area in 2023 and low-20% area in 2024 from contract wins and expanding wallet share with existing clients. S&P Global Ratings-adjusted EBITDA margins have trended upward from a shift to lower-cost regions marking an improvement by 300 basis points (bps) in 2022. We expect this trend will continue as the company expands in health care, leading to margins improving in the next two years,” S&P said in a statement.

The positive outlook indicates the potential for an upgrade over the next 12 months, the agency said.

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