CE Intermediate I LLC

Overview Key strengths Key risks Revenue visibility through its recurring (SaaS offering) and reoccurring (payment processing) characteristics. Elevated S&P Global Ratings-adjusted leverage of more than 10x, including preferred shares treated as debt. High switching cost results in good customer retention rates. Business lines are small and operate in niche industries. Exposure to a cyclical market that relies on consumer discretionary spending S&P Global Ratings economists expect the U.S. economy to slip and sustain below trend for a drawn-out period. While we now expect the economy to expand 2.3% this year, we see growth slowing to 1.3% in 2024. The recent strength in consumer spending that led to better-than-expected 2023 GDP growth estimates will likely wane in 2024, leading to a

...A slower macroeconomic environment has tempered our growth expectations for CE Intermediate I LLC (doing business as Clubessential Holdings, CEH). S&P Global Ratings economists expect the U.S. economy to slip and sustain below trend for a drawn-out period. While we now expect the economy to expand 2.3% this year, we see growth slowing to 1.3% in 2024. The recent strength in consumer spending that led to better-than-expected 2023 GDP growth estimates will likely wane in 2024, leading to a slowdown in consumer spending to 1.4% in 2024 from 2.5% in 2023. We believe that in a weaker macroeconomy, the company's...

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