Research Update: Magnate Worldwide LLC Assigned 'B' Rating, Stable Outlook; First-Lien Term Loan Rated 'B'

Magnate Worldwide LLC, a third-party logistics provider in the U.S. and internationally, was acquired by private equity firm Littlejohn&Co. on Dec. 30, 2021. The transaction was financed with a $50 million asset-based lending (ABL) facility ($10 million drawn at close), $260 million first-lien term loan, $95 million second-lien term loan, and $262 million equity contribution. Magnate also has a $40 million first-lien delayed-draw term loan for future acquisitions. S&P Global Ratings assigned its 'B' issuer credit rating to Magnate. We also assigned our 'B' issue-level rating and '3' recovery rating (50%-70%; rounded estimate: 60%) to the first-lien term loan and delayed-draw term loan. The stable outlook reflects our expectation that the company's credit metrics will remain commensurate with

...- Magnate Worldwide LLC, a third-party logistics provider in the U.S. and internationally, was acquired by private equity firm Littlejohn & Co. on Dec. 30, 2021. - The transaction was financed with a $50 million asset-based lending (ABL) facility ($10 million drawn at close), $260 million first-lien term loan, $95 million second-lien term loan, and $262 million equity contribution. Magnate also has a $40 million first-lien delayed-draw term loan for future acquisitions. - S&P Global Ratings assigned its 'B' issuer credit rating to Magnate. - We also assigned our 'B' issue-level rating and '3' recovery rating (50%-70%; rounded estimate: 60%) to the first-lien term loan and delayed-draw term loan. - The stable outlook reflects our expectation that the company's credit metrics will remain commensurate with the rating over the next year, supported by favorable near-term demand trends and constrained capacity for freight transportation....

Research Update