S&P assigns Store Capital LLC BBB-

S&P said it assigned a BBB- issuer rating to Store Capital LLC, formerly Store Capital Corp., with a stable outlook and lowered its senior unsecured notes to BBB-. The agency plans to transfer the debt ratings to the new company shortly.

Affiliates of GIC, a Singaporean wealth fund, and Oak Street Real Estate Capital, of the fund asset manager, Blue Owl Capital Inc., bought Store Capital in an all-cash transaction valued at about $14.5 billion.

“We expect increased secured debt to weaken credit protection metrics following the close of the privatization transaction of Store despite healthy forecasted operating performance and a strong transaction pipeline,” S&P said in a press release.

The agency said it expects Store to deliver a robust operating performance over the next two years as the company will be operating under the same business strategy as the legacy Store Capital Corp.

“We forecast key credit metrics to deteriorate following the close of the transaction, given the initial increase in secured debt, and will gradually improve provided the company continues to aggressively grow its asset base and funds future acquisitions in a leverage-neutral manner,” 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.