First Advantage LLC., a background check and screening company based in Atlanta, GA, used proceeds from its upsized IPO to repay $200 million debt.
Consequently, S&P on July 15 raised FA’s issuer credit rating to B+ from B and its issue-level rating on its first-lien secured credit facility to BB- from B. The rating firm further issued a stable outlook with expectation that FA will experience a solid operating performance.
At the same time, Moody’s upgraded FA corporate family rating to B1 from B2. In its report, Moody’s noted that there had been a material reduction of leverage by 26% following the debt payment.
On June 14, FA announced in a press release that it had launched its IPO to repay debt and for general corporate purposes. According to the press release, the…