Stonepeak Nile Parent LLC's Proposed $500 Million Senior Secured Notes Due 2032 Rated 'BB' (Recovery Rating: '4')

TORONTO (S&P Global Ratings) Feb. 3, 2025--S&P Global Ratings today assigned its 'BB' issue rating and '4' recovery rating to Stonepeak Nile Parent LLC's proposed $500 million senior secured notes due 2032. The '4' recovery rating indicates our expectation of average (30%-50%; rounded estimate: 40%) recovery in the event of a hypothetical default. The company intends to use the net proceeds to partially finance its $3.1 billion acquisition of Air Transport Services Group Inc. (ATSG). To complete the acquisition and retire ATSG's existing debt, Stonepeak also intends to raise a $1.5 billion term loan and contribute about $1.3 billion of cash common equity. The proposed secured notes will rank pari passu with the term loan and undrawn revolver in the

...February 3, 2025 TORONTO (S&P Global Ratings) Feb. 3, 2025--S&P Global Ratings today assigned its '##' issue rating and '4' recovery rating to Stonepeak Nile Parent LLC's proposed $500 million senior secured notes due 2032. The '4' recovery rating indicates our expectation of average (30%-50%; rounded estimate: 40%) recovery in the event of a hypothetical default. The company intends to use the net proceeds to partially finance its $3.1 billion acquisition of Air Transport Services Group Inc. (ATSG). To complete the acquisition and retire ATSG's existing debt, Stonepeak also intends to raise a $1.5 billion term loan and contribute about $1.3 billion of cash common equity. The proposed secured notes will rank pari passu with the term loan and undrawn revolver in the first-lien debt agreement (see "Research Update: Stonepeak Nile Parent LLC Assigned '##' Issuer Credit Rating, Outlook Stable; Proposed Term Loan Rated '##'," published Jan. 27, 2025). The stable outlook on the Stonepeak issuer...

Ratings Action