Bulletin: FCG Acquisitions Inc's $50 Million Incremental Term Loan Upsize Does Not Impact Ratings

This report does not constitute a rating action. Des Moines (S&P Global Ratings) Oct 7, 2022—S&P Global Ratings today said that FCG Acquisitions Inc.?s (B-/Stable/--) incremental $50 million first-lien term loan due 2028, which is fungible with the company?s existing $150 million first-lien term loan issued in May, does not impact our ?B-? issuer-credit rating or stable outlook. Further, our ?B-? issue-level and ?3? recovery rating on FCG?s first lien debt are unchanged. FCG intends to use the proceeds and cash remaining from the May term loan issuance to fund six acquisitions currently under letters of intent (LOI). The incremental debt issuance and associated acquisition spend is consistent with our view of FCG?s acquisitive strategy. Our ratings are not impacted

... term loan due 2028, which is fungible with the company's existing $150 million first-lien term loan issued in May, does not impact our `B-' issuer-credit rating or stable outlook. Further, our `B-' issue-level and `3' recovery rating on FCG's first lien debt are unchanged. FCG intends to use the proceeds and cash remaining from the May term loan issuance to fund six acquisitions currently under letters of intent (LOI). The incremental debt issuance and associated acquisition spend is consistent with our view of FCG's acquisitive strategy. Our ratings are not impacted because the upsize does not materially alter our forecast for high S&P Global Ratings- adjusted debt leverage through fiscal 2023 (ending June 30...

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