KKR Apple Bidco (dba Atlantic Aviation) Ratings Affirmed On Acquisition Of Competing Network; Outlook Stable

Plano, Texas-based KKR Apple Bidco LLC (dba Atlantic Aviation), a provider of fuel, terminal, aircraft hangaring, and other aviation services, will issue a $330 million fungible incremental first-lien term loan which together with $100 million in new cash equity, will fund the $425 million acquisition of a competing fixed-base operator (FBO) network and associated transaction fees and expenses. While the transaction is modestly leveraging, our forecast credit metrics are unchanged relative to our prior forecast due to the strong performance of the core business year-to-date 2021. As a result, we affirmed our 'B' issuer credit rating on KKR Apple Bidco LLC. The outlook is stable. Additionally, we affirmed our 'B+' and 'CCC+' ratings and '2' and '6' recovery ratings on

...October 14, 2021 - Plano, Texas-based KKR Apple Bidco LLC (dba Atlantic Aviation), a provider of fuel, terminal, aircraft hangaring, and other aviation services, will issue a $330 million fungible incremental first-lien term loan which together with $100 million in new cash equity, will fund the $425 million acquisition of a competing fixed-base operator (FBO) network and associated transaction fees and expenses. - While the transaction is modestly leveraging, our forecast credit metrics are unchanged relative to our prior forecast due to the strong performance of the core business year-to-date 2021. - As a result, we affirmed our 'B' issuer credit rating on KKR Apple Bidco LLC. The outlook is stable. - Additionally, we affirmed our 'B+' and '###+' ratings and '2' and '6' recovery ratings on the company's first-lien and second-lien credit facilities, respectively. - The stable outlook reflects our expectation that adjusted leverage will decline to the mid-6x area by year-end 2022, from...

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