Research Update: PPT Holdings I LLC 'B-' Rating Affirmed On Acquisition Of Curvature, Outlook Stable; Debt Also Rated

PPT Holdings I LLC, parent of Park Place Technologies LLC, a third-party maintenance provider, has entered into a definitive agreement to acquire Curvature Inc. The company expects to fund the acquisition and repay its existing debt with a $845 million first-lien term loan, $230 million second-lien term loan, $70 million of equity from existing Curvature owners, and a $10 million subordinated seller note. We are affirming our 'B-' issuer credit rating on PPT. We are also assigning our 'B-' issue-level and '3' recovery ratings to the first-lien debt and 'CCC' issue-level and '6' recovery rating to the second-lien term loan. The outlook is stable, reflecting our view that despite initial leverage in the mid-9x area, material cost synergies planned for

...- PPT Holdings I LLC, parent of Park Place Technologies LLC, a third-party maintenance provider, has entered into a definitive agreement to acquire Curvature Inc. - The company expects to fund the acquisition and repay its existing debt with a $845 million first-lien term loan, $230 million second-lien term loan, $70 million of equity from existing Curvature owners, and a $10 million subordinated seller note. - We are affirming our 'B-' issuer credit rating on PPT. - We are also assigning our 'B-' issue-level and '3' recovery ratings to the first-lien debt and '###' issue-level and '6' recovery rating to the second-lien term loan. - The outlook is stable, reflecting our view that despite initial leverage in the mid-9x area, material cost synergies planned for the second half of 2021 will lead to an improvement in EBITDA margins and reduce leverage toward the low- to mid-8x range by the end of 2021....

Research Update