Bulletin: White Cap Supply Holdings LLC?s Proposed First-Lien Add-On Keeps Adjusted Leverage Within Our Expected Range

BOISE (S&P Global Ratings) June 3, 2024--S&P Global Ratings today said that White Cap Supply Holdings LLC's proposed add-on to its first-lien term keeps its adjusted leverage within our tolerance for the rating. The company intends to use proceeds to fund multiple small to midsize tuck-in acquisitions and put any excess toward repaying borrowings under its asset-based lending facility. Pro forma for this transaction, we expect adjusted leverage at the upper end of 5x-6x range, with about a 1x EBITDA cushion below our downside tolerance of over 7x. We believe these acquisitions will continue to build out White Cap's scale, geographic footprint, and distribution network. At the same time, White Cap intends to reprice its first-lien loan and extend the

...June 3, 2024 BOISE (S&P Global Ratings) June 3, 2024--S&P Global Ratings today said that White Cap Supply Holdings LLC's proposed add-on to its first-lien term keeps its adjusted leverage within our tolerance for the rating. The company intends to use proceeds to fund multiple small to midsize tuck-in acquisitions and put any excess toward repaying borrowings under its asset-based lending facility. Pro forma for this transaction, we expect adjusted leverage at the upper end of 5x-6x range, with about a 1x EBITDA cushion below our downside tolerance of over 7x. We believe these acquisitions will continue to build out White Cap's scale, geographic footprint, and distribution network. At the same time, White Cap intends to reprice its first-lien loan and extend the maturity of its $50 million revolving credit facility. We believe this could lower interest costs, bolster EBITDA interest coverage and free cash flow, and improve the company's overall liquidity and debt maturity profile. Our 'B'...

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