Research Update: Grant Thornton Advisors LLC Assigned 'B' Rating; Outlook Stable; Debt Rated 'B'

Private-equity sponsor New Mountain Capital and coinvestors have entered into an agreement to acquire a majority stake in Chicago-based accounting and professional services firm Grant Thornton Advisors LLC. The company will fund the acquisition with proceeds from a new $2.175 billion senior secured credit facility comprising a $1.8 billion term loan due 2031 and a $375 million revolving credit facility due 2029, along with equity from New Mountain Capital and current partners. We assigned our 'B' issuer credit rating to Grant Thornton. At the same time, we assigned our 'B' issue-level and '3' recovery ratings to the proposed senior secured credit facility. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery for lenders in the

...- Private-equity sponsor New Mountain Capital and coinvestors have entered into an agreement to acquire a majority stake in Chicago-based accounting and professional services firm Grant Thornton Advisors LLC. - The company will fund the acquisition with proceeds from a new $2.175 billion senior secured credit facility comprising a $1.8 billion term loan due 2031 and a $375 million revolving credit facility due 2029, along with equity from New Mountain Capital and current partners. - We assigned our 'B' issuer credit rating to Grant Thornton. At the same time, we assigned our 'B' issue-level and '3' recovery ratings to the proposed senior secured credit facility. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery for lenders in the event of a payment default. - The stable outlook reflects our expectation that Grant Thornton will organically grows revenue in the mid-single-digit percent area and realize several cost efficiencies. We...

Research Update