Project Ruby Ultimate Parent Co.'s Proposed $405 Million Incremental First-Lien Term Loan Rated 'B' (Recovery: '2')

WASHINGTON D.C. (S&P Global Ratings) Jan. 18, 2024--S&P Global Ratings today assigned its 'B' issue-level rating and '2' recovery rating to the proposed $405 million incremental first-lien term loan issued by Project Ruby Parent Corp.'s (WellSky) subsidiary Project Ruby Ultimate Parent Co. The '2' recovery rating indicates our expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of a default. The company intends to use the proceeds from this incremental loan to refinance the existing $396 million incremental first-lien term loan it issued in 2022, likely at a lower interest rate. WellSky is also extending the maturity of its existing $110 million revolving credit facility by 1.75 years to Dec. 10, 2027. All of our other ratings on

...January 18, 2024 WASHINGTON D.C. (S&P Global Ratings) Jan. 18, 2024--S&P Global Ratings today assigned its 'B' issue-level rating and '2' recovery rating to the proposed $405 million incremental first-lien term loan issued by Project Ruby Parent Corp.'s (WellSky) subsidiary Project Ruby Ultimate Parent Co. The '2' recovery rating indicates our expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of a default. The company intends to use the proceeds from this incremental loan to refinance the existing $396 million incremental first-lien term loan it issued in 2022, likely at a lower interest rate. WellSky is also extending the maturity of its existing $110 million revolving credit facility by 1.75 years to Dec. 10, 2027. All of our other ratings on Project Ruby are unchanged. We view the transaction as favorable from a credit perspective because it will be essentially leverage neutral while improving the company's pricing and extending its maturities. Our rating...

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