Research Update: BCP Renaissance Parent LLC Outlook Revised To Negative, Ratings Affirmed; New Term Loan B-2 Rated 'B+' (Recovery: '3')

BCP Renaissance Parent LLC has issued a $65 million term loan B-2 facility due 2024. The term loan B-2 is a new tranche of its existing $1.25 billion senior secured term loan B-1 facility. BCP will use the proceeds from the issuance for general corporate purposes and to fund a cash distribution to its parent company, the Blackstone Group. We are revising our outlook on BCP to negative from stable and are affirming our 'B+' issuer credit rating on the company and our 'B+' issue-level rating on its existing senior secured term loan B-1 facility. At the same time, we are assigning our 'B+' issue-level rating and '3' recovery rating to the company's new senior secured term loan B-2 facility.

...- BCP Renaissance Parent LLC has issued a $65 million term loan B-2 facility due 2024. The term loan B-2 is a new tranche of its existing $1.25 billion senior secured term loan B-1 facility. BCP will use the proceeds from the issuance for general corporate purposes and to fund a cash distribution to its parent company, the Blackstone Group. - We are revising our outlook on BCP to negative from stable and are affirming our 'B+' issuer credit rating on the company and our 'B+' issue-level rating on its existing senior secured term loan B-1 facility. - At the same time, we are assigning our 'B+' issue-level rating and '3' recovery rating to the company's new senior secured term loan B-2 facility. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default. - The negative outlook reflects our expectation that BCP's debt to EBITDA will approach 9x in 2019 following the issuance of its new term loan B-2....

Research Update