ASP Dream Acquisition Co. LLC

Overview Key strengths Key risks The length and stability of school contracts provide revenue visibility. Debt leverage to stay elevated due to financial sponsor ownership. Niche focus on academic intervention, special education, and behavioral services within a highly fragmented market where very few providers exist at scale. Highly seasonal working capital dynamics, which can strain liquidity. Benefits from favorable education funding dynamics, supported by high demand for services. A slowdown in the U.S. could pressure the company?s growth. FullBloom has benefitted from strong demand for its special education and social-emotional learning services and from stable funding environment despite challenges from the broader economy. FullBloom has seen strong growth across all business segments, evidenced by a 27% year-over-year (YoY) increase in

...S&P Global Ratings expects ASP Dream Acquisition's (d/b/a FullBloom) credit metrics will continue to strengthen on market tailwinds, with leverage declining below 6x over the next 12 months. FullBloom has benefitted from strong demand for its special education and social- emotional learning services and from stable funding environment despite challenges from the broader economy. FullBloom has seen strong growth across all business segments, evidenced by a 27% year-over-year (YoY) increase in revenue for the nine months ended April 2023. In addition, grants through the Emergency Assistance to Non-Public Schools (EANS) have helped the company to gain new customers and market share. In September 2023, FullBloom completed a fungible add-on term loan issuance to raise $75 million, using proceeds primarily to pay down the outstanding revolver amount, fund past tuck- in acquisitions, and fund working capital given the overall growth in the business. For the fiscal year ended July 31, 2023, we...

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