S&P Global Ratings affirmed its BB+ issuer credit and senior secured debt ratings on FEH Inc.
The ratings affirmation follows FEH's launch of a $300 million add-on to its secured term loan due 2024 to fund the acquisition of THL Credit Advisors LLC, which is expected to close in the first quarter.
With the deal, Ratings predicts that leverage will be slightly below the 4x debt-to-adjusted EBITDA downside trigger while interest coverage ratios remain above 5x.
The outlook remains negative, reflecting the agency's expectation that the company's organic growth will remain under pressure during the next 12 months while AUM remains meaningfully concentrated in the global value strategy and leverage remains below 4x.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.