Victra Holdings LLC Upgraded To ?B+? On Debt Refinancing And Reduced Leverage; Outlook Stable; New Debt Rated 'B+'

U.S.-based Victra Holdings LLC?s proposed refinancing addresses its upcoming debt maturities while improving its S&P Global Ratings-adjusted leverage below 4x through modest debt reduction. Victra's performance has generally exceeded our expectations, driven by efficiency enhancements and incremental commissions from Verizon, largely offsetting modest volume headwinds. Therefore, we raised our issuer credit rating on the company to 'B+' from 'B'. At the same time, we assigned a 'B+' issue-level rating to the company's repriced $734 million term loan, which includes a $150 million fungible add-on, and its new $165 million revolving credit facility (RCF), with a recovery rating of '3' (50%-70%; rounded estimate: 60%). We view all the senior secured debt as pari passu. The stable outlook reflects our expectation that

...September 4, 2024 - U.S.-based Victra Holdings LLC's proposed refinancing addresses its upcoming debt maturities while improving its S&P Global Ratings-adjusted leverage below 4x through modest debt reduction. - Victra's performance has generally exceeded our expectations, driven by efficiency enhancements and incremental commissions from Verizon, largely offsetting modest volume headwinds. - Therefore, we raised our issuer credit rating on the company to 'B+' from 'B'. - At the same time, we assigned a 'B+' issue-level rating to the company's repriced $734 million term loan, which includes a $150 million fungible add-on, and its new $165 million revolving credit facility (RCF), with a recovery rating of '3' (50%-70%; rounded estimate: 60%). We view all the senior secured debt as pari passu. - The stable outlook reflects our expectation that Victra will maintain steady operating performance, supporting positive free operating cash flow (FOCF) generation and S&P Global Ratings-adjusted leverage...

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