Research Update: CCRR Parent Inc. Assigned 'B' Rating Following Merger; Outlook Stable

Ohio-based travel nurse staffing providers Trustaff Management and a target in the staffing space are merging to form CCRR Parent Inc. CCRR Parent will finance the deal with a mixture of a $500 million term loan B and common equity from the sponsor and management. The company will also have a $50 million first-lien revolver (initially undrawn). S&P Global Ratings expects pro forma leverage of about 6x at transaction close, remaining between 5x-6x over the next 12 months. Moreover, given the private equity ownership, we expect leverage will remain high on a sustained basis. We are assigning CCRR Parent Inc. our 'B' issuer credit rating. The outlook is stable. We are also assigning our 'B' issue-level and '3' recovery ratings

...- Ohio-based travel nurse staffing providers Trustaff Management and a target in the staffing space are merging to form CCRR Parent Inc. - CCRR Parent will finance the deal with a mixture of a $500 million term loan B and common equity from the sponsor and management. The company will also have a $50 million first-lien revolver (initially undrawn). - S&P Global Ratings expects pro forma leverage of about 6x at transaction close, remaining between 5x-6x over the next 12 months. Moreover, given the private equity ownership, we expect leverage will remain high on a sustained basis. - We are assigning CCRR Parent Inc. our 'B' issuer credit rating. The outlook is stable. - We are also assigning our 'B' issue-level and '3' recovery ratings to the company's term loan B and revolver. - Our stable rating outlook reflects our expectation that despite EBITDA growth and positive cash flow generation, CCRR Parent Inc. will maintain leverage above 5x given the aggressive financial policy and sponsor...

Research Update