Research Update: Apro LLC's First-Lien Term Loan Rated 'B' (Recovery Rating: '3') On Merger With Alta And Refinancing; 'B' ICR Affirmed

Apro LLC ("Apro") has merged with Denver-based CF Altitude Holdings, LLC and its subsidiary (collectively, "Alta") under its parent, CF United LLC. Apro plans to issue a $725 million term loan B to refinance $616 million of Apro and Alta existing term debt, fund a dividend, and pay fees and expenses associated with the transaction. At the same time, the company will upsize its revolver to $75 million. As a result, S&P Global Ratings assigned its 'B' issue-level rating and '3' recovery rating to Apro's proposed term loan, reflecting its expectations for meaningful (50%-70%; rounded estimate: 55%) recovery. At the same time, we affirmed our 'B' issuer credit rating on Apro. The stable outlook reflects our view that the company's

...- Apro LLC ("Apro") has merged with Denver-based CF Altitude Holdings, LLC and its subsidiary (collectively, "Alta") under its parent, CF United LLC. - Apro plans to issue a $725 million term loan B to refinance $616 million of Apro and Alta existing term debt, fund a dividend, and pay fees and expenses associated with the transaction. At the same time, the company will upsize its revolver to $75 million. - As a result, S&P Global Ratings assigned its 'B' issue-level rating and '3' recovery rating to Apro's proposed term loan, reflecting its expectations for meaningful (50%-70%; rounded estimate: 55%) recovery. - At the same time, we affirmed our 'B' issuer credit rating on Apro. - The stable outlook reflects our view that the company's credit metrics will remain stable over the next 12 months despite lower overall EBITDA margins for the combined business....

Research Update