Bulletin: CE Intermediate I LLC's (Clubessential) Upsized Term Loan Will Support Its Inorganic Expansion; Ratings Unchanged

This report does not constitute a rating action. BOSTON (S&P Global Ratings) Feb. 6, 2025--S&P Global Ratings today said that its ?B-? issue-level ratings and '3' recovery ratings on CE Intermediate I LLC's (B-/Stable/--; d/b/a Clubessential) new upsized $625 million first-lien term loan due 2032 and $60 million first-lien revolving credit facility due 2030 are unchanged. The '3' recovery ratings indicate our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default. The company will use the proceeds from the new term loan, which is $200 million larger than its existing facility, to repay the $426 million outstanding on its existing term loan, fund its acquisition of Momence, repay the $30 million outstanding

...February 6, 2025 This report does not constitute a rating action. BOSTON (S&P Global Ratings) Feb. 6, 2025--S&P Global Ratings today said that its `B-` issue- level ratings and '3' recovery ratings on CE Intermediate I LLC's (B-/Stable/--; d/b/a Clubessential) new upsized $625 million first-lien term loan due 2032 and $60 million first-lien revolving credit facility due 2030 are unchanged. The '3' recovery ratings indicate our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default. The company will use the proceeds from the new term loan, which is $200 million larger than its existing facility, to repay the $426 million outstanding on its existing term loan, fund its acquisition of Momence, repay the $30 million outstanding balance on its revolving credit facility, and for general corporate purposes. As part of the transaction, Clubessential will increase its revolver's capacity by $30 million. The first-lien tranche is priced...

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