Fortrea Holdings Inc.
Primary: Fortrea Deal Raises Liquidity Concerns Given High Pro Forma Interest Costs; Guidance in High-7% Area May Not Compensate for Risks
Fri 06/09/2023 17:58 PM
Relevant Items:
Preliminary OM
Reorg Covenant Analysis
Contract research organization Fortrea is issuing $570 million of seven-year Ba3/BB senior secured notes as part of Labcorp’s spinoff of the business. Initial guidance for the new paper is in the 7.75% to 8% area.
The deal is being marketed off of pro forma net leverage of 3.7x and stand-alone adjusted EBITDA of $409.8 million.
The high-7%-area guidance represents a credit spread of less than 400 bps (based on the lower...
Preliminary OM
Reorg Covenant Analysis
Contract research organization Fortrea is issuing $570 million of seven-year Ba3/BB senior secured notes as part of Labcorp’s spinoff of the business. Initial guidance for the new paper is in the 7.75% to 8% area.
The deal is being marketed off of pro forma net leverage of 3.7x and stand-alone adjusted EBITDA of $409.8 million.
The high-7%-area guidance represents a credit spread of less than 400 bps (based on the lower...
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