Research Update: WASH Multifamily Acquisition Inc. ICR Affirmed On Refinancing, Outlook Stable; Secured Notes Rated 'B-' (Recovery: '3')

North American outsourced laundry services provider WASH Multifamily Acquisition Inc. intends to issue a new $75 million super-priority revolving credit facility (unrated) and $850 million of senior secured notes, which it will use to refinance all of its existing debt. Despite the expected increase in its interest expense, we view the refinancing as favorable because it will extend the company's debt maturity profile and enhance its liquidity position (given the increase in the size of its revolving credit facility to $75 million from $45 million). We affirmed our 'B-' issuer credit rating on WASH Multifamily Acquisition Inc. At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating to the company's proposed senior secured notes. The '3'

...- North American outsourced laundry services provider WASH Multifamily Acquisition Inc. intends to issue a new $75 million super-priority revolving credit facility (unrated) and $850 million of senior secured notes, which it will use to refinance all of its existing debt. - Despite the expected increase in its interest expense, we view the refinancing as favorable because it will extend the company's debt maturity profile and enhance its liquidity position (given the increase in the size of its revolving credit facility to $75 million from $45 million). - We affirmed our 'B-' issuer credit rating on WASH Multifamily Acquisition Inc. - At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating to the company's proposed senior secured notes. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a default. - The stable outlook reflects our expectation that WASH will increase its organic revenue at a...

Research Update