Bulletin: Azalea TopCo Inc. Proposed Term Loan Repricing Will Be Leverage Neutral

NEW YORK (S&P Global Ratings) Nov. 21, 2024--S&P Global Ratings said today that its view of Azalea TopCo Inc.'s (doing business as PG Forsta; PGF) credit quality is unaffected following the proposed repricing of its $1.825 billion fungible first-lien term loan. We expect the transaction will be leverage neutral given there is no change to the facility size, although we expect PGF will benefit from lower cash interest payments. Our 'B-' issue-level rating and '3' recovery rating on the loan are unchanged, as is our 'B-' issuer credit rating on PGF. The rounded recovery estimate will be 50%, indicating our expectation of meaningful recovery in the event of payment default. For complete issuer credit rationale, see our most recent research

...November 21, 2024 NEW YORK (S&P Global Ratings) Nov. 21, 2024--S&P Global Ratings said today that its view of Azalea TopCo Inc.'s (doing business as PG Forsta; PGF) credit quality is unaffected following the proposed repricing of its $1.825 billion fungible first-lien term loan. We expect the transaction will be leverage neutral given there is no change to the facility size, although we expect PGF will benefit from lower cash interest payments. Our 'B-' issue-level rating and '3' recovery rating on the loan are unchanged, as is our 'B-' issuer credit rating on PGF. The rounded recovery estimate will be 50%, indicating our expectation of meaningful recovery in the event of payment default. For complete issuer credit rationale, see our most recent research update on PGF, published April 17, 2024. ISSUE RATINGS¡RECOVERY ANALYSIS Key analytical factors - PGF's capital structure consists of a $350 million revolving credit facility maturing in 2029 (assumed 85% drawn in a default scenario), $1.825...

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