To a sub-segment of the North American fitness club industry, Risks stemming from the company's limited scale and scope,Ĭustomer concentrations, and its substantial debt burden.ĪBC provides gym-management software and payment processing services Senior Secured First Lien Revolving Creditįacility, Downgraded to B3 (LGD3) from B2 (LGD3)ĪBC Financial's B3 CFR broadly reflects the high business and financial Moody's took the following rating actions:
Reflects that the repayment in full of the second lien debt eliminatesĪ layer of loss absorption for the senior secured first lien credit facilities. The downgrade of the first lien senior secured facilities ratings to B3
To $15 million of free cash flow and full availability on the company's Of accessible cash on hand, Moody's expectation for $10 Will remain good however, given approximately $21 million In the company's NextGen platform remains high. Show only modest improvement over the next 12 to 18 months as investment Moody's estimates that debt-to-EBITDAĮxceeds 8.0x as of LTM March 2019 (Moody's-adjustedĪnd after the expensing of capitalized software development) and will Nevertheless, Moody's affirmed ABC Financial's B3 CFRĪs the company's scale and business diversity remain limited while It will save the company approximately $5 million in annual cash Moody's views the transaction as a credit positive development as With the proceeds of a $115 million first lien term loan add-on. The company's first lien bank credit facilities to B3 from B2.ĪBC Financial plans on fully repaying its second lien term loan (unrated) The same time, Moody's downgraded the instrument ratings on Project Accelerate Parent, LLC's (dba ABC Financial) B3 Corporateįamily Rating and B3-PD Probability of Default Rating. New York, - Moody's Investors Service ("Moody's") affirmed