UFC Holdings LLC Re-Priced Term Loan Rated ?B?; Recovery Rating ?3?

NEW YORK (S&P Global Ratings) Jan. 20, 2021--S&P Global Ratings assigned its 'B' issue-level rating and '3' recovery rating to the proposed first-lien term loan of $2.453 billion, to be issued by UFC Holdings LLC. The company will use all proceeds from the debt issuance to repay the existing term loan, and the new debt will mature in April 2026, the same as the existing debt. Because this is a refinancing transaction, it is mostly leverage-neutral and does not impair recovery prospects for term loan lenders. Our issue-level rating assigned to the proposed term loan is 'B', the same as the 'B' rating on the company's existing first-lien term loan. The '3' recovery rating reflects our expectation of meaningful (30%

...- EBITDA multiple: 6.5x - Cash flow revolver: 85% drawn at default Simplified waterfall - Net recovery value (after 5% administrative expense): $1.5 billion - Obligor/nonobligor valuation split: 100%/0% - Estimated secured commercial debtholder claims: $34 million - Estimated first-lien debt claims: $2.61 billion - Recovery range: 50%-70% (rounded estimate: 55%) Note: All debt amounts include six months of prepetition interest....

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