Champ Acquisition Corp. Senior Secured Revolver Rating Lowered To 'B' From 'BB' (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) Dec. 17, 2018--S&P Global Ratings today lowered 
its issue-level rating on Champ Acquisition Corp.'s $150 million revolver to 
'B' from 'BB' and revised the recovery rating on this debt to '3' from '1+'. 
At the same time, we affirmed our 'B' issue-level rating the company's 
first-lien term loan, which the company is now upsizing to $775 million from 
$750 million. The recovery rating on the first-term loan remains '3'. The '3' 
recovery rating on the revolver and term loan reflects our expectation for 
meaningful (50%-70%, rounded estimate: 65%) recovery of principal in the event 
of a payment default. 

Concurrently, we affirmed our 'CCC+' issue-level rating on the company's $150 
million second-lien term loan. The recovery rating remains '6', reflecting our 
expectation for negligible (0%-10%; rounded estimate: 0%) recovery of 
principal. 

The issue-level rating downgrade on the revolver reflects the company's 
proposed change to its capital structure where its $150 million revolver now 
ranks pari passu with the first-lien term loan. Previously, the revolver had a 
super-priority position in the capital structure. 

The revised capital structure and the modestly upsized first-lien term loan 
will result in a slight increase in debt leverage and will have no impact on 
the existing 'B' issuer credit rating or the stable outlook. We forecast the 
company's pro forma debt leverage will be about 4.8x as of the end of fiscal 
2018 before rising to the low-5x area in 2019.
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