Amentum Holdings LLC Outlook Revised To Positive From Negative On Proposed All-Stock Merger With Jacobs' Businesses

Amentum Holdings LLC announced it will merge with Jacobs Solutions Inc.'s Critical Mission Solutions (CMS) and Cyber&Intelligence (C&I) businesses and operate as a publicly traded company. The proposed all-stock transaction will increase Amentum's scale and could improve leverage in line with a higher rating. Therefore, we revised the outlook to positive from negative. The positive outlook reflects the potential for a higher rating if we view the combined businesses as meaningfully improved or leverage drops below 5x post close. NEW YORK (S&P Global Ratings) Dec. 21, 2023--S&P Global Ratings today took the rating actions listed above. We believe the proposed merger will enhance the scale and diversification for Amentum. Jacobs CMS and C&I add $5.5 billion (as of

...December 21, 2023 - Amentum Holdings LLC announced it will merge with Jacobs Solutions Inc.'s Critical Mission Solutions (CMS) and Cyber & Intelligence (C&I) businesses and operate as a publicly traded company. - The proposed all-stock transaction will increase Amentum's scale and could improve leverage in line with a higher rating. - Therefore, we revised the outlook to positive from negative. - The positive outlook reflects the potential for a higher rating if we view the combined businesses as meaningfully improved or leverage drops below 5x post close. NEW YORK (S&P Global Ratings) Dec. 21, 2023--S&P Global Ratings today took the rating actions listed above. The proposed all-stock merger between Amentum and Jacobs' CMS and C&I businesses could be deleveraging. The combined company will be publicly traded and majority owned by Jacobs' shareholders. We forecast Amentum's S&P Global Ratings-adjusted leverage on a stand-alone basis of 7.1x at fiscal year-end (Sept. 30, 2023). Management...

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