Mitchell Topco Holdings (d/b/a Enlyte) $150 Million Incremental Term Loan Rated 'B-'

NEW YORK (S&P Global Ratings) July 26, 2023--S&P Global Ratings today assigned a 'B-' issue rating to Enlyte's proposed US$150 million add-on to its first-lien term loan due 2028 (issued by financing subsidiary Mitchell International Inc.). We also assigned a '3' recovery rating to the loan, indicating an expectation of meaningful recovery (50%-70%; rounded estimate: 55%) in the event of payment default. All existing ratings, including the 'B-' issuer credit rating on Enlyte, are unchanged by the incremental issuance. We view the proposed issuance as relatively leverage neutral. We expect the company to use the proceeds to refinance its $105 million revolver, which it drew in late June to finance an acquisition, as well as to add cash to the

...July 26, 2023 NEW YORK (S&P Global Ratings) July 26, 2023--S&P Global Ratings today assigned a 'B-' issue rating to Enlyte's proposed US$150 million add-on to its first-lien term loan due 2028 (issued by financing subsidiary Mitchell International Inc.). We also assigned a '3' recovery rating to the loan, indicating an expectation of meaningful recovery (50%-70%; rounded estimate: 55%) in the event of payment default. All existing ratings, including the 'B-' issuer credit rating on Enlyte, are unchanged by the incremental issuance. We view the proposed issuance as relatively leverage neutral. We expect the company to use the proceeds to refinance its $105 million revolver, which it drew in late June to finance an acquisition, as well as to add cash to the balance sheet for general corporate purposes. The acquisition, a leading workers' compensation network across seven states, is a modestly sized (about 5% of consolidated EBITDA) strategic asset for Enlyte that will expand the company's...

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