Bulletin: Wand NewCo 3 Inc. Cash Flow Benefits From Improved Debt Pricing

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Jan. 6, 2025--S&P Global Ratings today said that Wand NewCo 3 Inc. ?s (dba Caliber) proposed refinancing of its term loan B and revolving credit facility will not significantly affect the company?s credit quality. Our ?B? issuer credit rating and stable outlook on Wand NewCo are unchanged. We view the refinancing favorably because we expect the company?s cash flow to benefit from the lower debt service costs. We are updating our recovery expectations down slightly however, largely due to collision repair market conditions returning to more normalized levels. We are lowering our expected emergence EBITDA level as a result. Our ?B? issue-level rating and ?4? rating on

...January 6, 2025 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Jan. 6, 2025--S&P Global Ratings today said that Wand NewCo 3 Inc.'s (dba Caliber) proposed refinancing of its term loan B and revolving credit facility will not significantly affect the company's credit quality. Our `B' issuer credit rating and stable outlook on Wand NewCo are unchanged. We view the refinancing favorably because we expect the company's cash flow to benefit from the lower debt service costs. We are updating our recovery expectations down slightly however, largely due to collision repair market conditions returning to more normalized levels. We are lowering our expected emergence EBITDA level as a result. Our `B' issue-level rating and `4' rating on the company's first lien debt remain unchanged. The recover rating indicates our expectation of meaningful (30%-50%; rounded estimate: 35%, down from 40%) recovery in a hypothetical default scenario. We expect the refinancing to contribute...

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