Fitch Ratings affirmed KinderCare Learning Companies, Inc.'s Long-Term Issuer Default Rating (IDR) at 'B+' on October 15, 2024. Concurrently, Fitch upgraded KinderCare's first-lien term loan and upsized Revolver to 'BB+' with a Recovery Rating of 'RR1' from 'BB'/'RR2'.
This positive rating action follows the completion of KinderCare's initial public offering (IPO) on October 9, 2024. KinderCare plans to use the IPO proceeds to pre-pay a portion of its term loan, which is expected to reduce long-term debt to approximately $1.0 billion.
The improved capital structure, including the amendment of the First Lien Revolving Credit Facility to increase total commitments to $240.0 million, enhances the company's financial flexibility. Fitch views access to public markets for capital raising as a credit positive that could further strengthen KinderCare's financial position over time.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.