LCM Investments Holdings II LLC Assigned 'BB-' Issuer Credit Rating; Outlook Stable

Florida-based auto retailer LCM Investments Holdings II LLC (d/b/a Morgan Automotive Group) plans to issue $650 million senior unsecured notes due 2029 and refinance its existing credit facilities with a new five-year $1.2 billion senior secured credit facility (unrated), using proceeds to pay down existing debt, fund a distribution to the owners, and for general corporate purposes. S&P Global Ratings assigned its 'BB-' issuer credit rating and 'BB-' rating to the proposed $650 million senior unsecured notes, with a '4' recovery rating (rounded estimate: 30%), indicating an average recovery for debtholders in a hypothetical default scenario. The stable outlook reflects our expectation that Morgan Automotive will continue to generate good cash flow while maintaining strong adjusted EBITDA margins, which will

...- Florida-based auto retailer LCM Investments Holdings II LLC (d/b/a Morgan Automotive Group) plans to issue $650 million senior unsecured notes due 2029 and refinance its existing credit facilities with a new five-year $1.2 billion senior secured credit facility (unrated), using proceeds to pay down existing debt, fund a distribution to the owners, and for general corporate purposes. - S&P Global Ratings assigned its '##-' issuer credit rating and '##-' rating to the proposed $650 million senior unsecured notes, with a '4' recovery rating (rounded estimate: 30%), indicating an average recovery for debtholders in a hypothetical default scenario. - The stable outlook reflects our expectation that Morgan Automotive will continue to generate good cash flow while maintaining strong adjusted EBITDA margins, which will support debt to EBITDA below 4x. NEW YORK (S&P Global Ratings) April 19, 2021--S&P Global Ratings today took the rating actions listed above. Morgan Automotive Group is a small...

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