Allied Universal Topco LLC 'B-' Rating Affirmed On Pending $1 Billion Acquisition; New Debt Rated 'B-'; Outlook Stable

Allied Universal Topco LLC (Allied) has agreed to acquire manned security services competitor U.S. Security Associates Holdings Inc. (USSA) for about $1 billion. The acquisition, which is expected to close in the third quarter of 2018, will be funded with a new $800 million first-lien term loan, $210 million second-lien notes, and an equity contribution from sponsors Warburg Pincus and Wendel. Allied also plans to repay a portion of existing borrowings, upsize and partially extend the maturity of its revolver to 2022, which we view as favorable to its liquidity position. We are affirming our 'B-' issuer credit rating and stable outlook on Allied and assigning our 'B' issue level and '3' recovery rating to the new $800 million first-lien

...+ Allied Universal Topco LLC (Allied) has agreed to acquire manned security services competitor U.S. Security Associates Holdings Inc. (USSA) for about $1 billion. + The acquisition, which is expected to close in the third quarter of 2018, will be funded with a new $800 million first-lien term loan, $210 million second-lien notes, and an equity contribution from sponsors Warburg Pincus and Wendel. Allied also plans to repay a portion of existing borrowings, upsize and partially extend the maturity of its revolver to 2022, which we view as favorable to its liquidity position. + We are affirming our 'B-' issuer credit rating and stable outlook on Allied and assigning our 'B' issue level and '3' recovery rating to the new $800 million first-lien term loan. + At the same time, we are affirming our '###' issue-level rating and '6' recovery rating on the existing second-lien term loan. + The stable outlook reflects our expectation that Allied will maintain sufficient liquidity to manage its operations...

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