Amentum Holdings LLC's Proposed $1.25 Billion Senior Unsecured Notes Due 2032 Rated 'B' (Recovery Rating: '6')

NEW YORK (S&P Global Ratings) July 29, 2024--S&P Global Ratings today assigned its 'B' issue-level rating and '6' recovery rating to U.S.-based government services provider Amentum Holdings LLC's proposed $1.25 billion senior unsecured notes due 2032. The '6' recovery rating indicates our expectation for negligible (0%-10%; rounded estimate: 5%) recovery in the event of a default. The notes will rank junior to the company's proposed $3.5 billion term loan B due 2031 and $850 million revolving credit facility (undrawn) due 2029. Amentum will use the proceeds from these notes to refinance its existing capital structure and partially fund a $1 billion dividend to Jacobs Solutions Inc. as part of its all-stock acquisition of Jacobs' Critical Mission Systems and Cyber and

...- Simulated year of default: 2028 - EBITDA at emergence: $568 million - EBITDA multiple: 5x - Jurisdiction: U.S. Simplified waterfall - Net enterprise value (after 5% administrative costs): $2.7 billion - Valuation split (obligors/nonobligors): 75%/25% - Collateral value available to first-lien debt: $2.4 billion - First-lien debt claims: $4.2 billion - --Recovery expectations 50%-70% (rounded estimate: 60%) - Total value available to unsecured claims: $236 million - Total unsecured debt claims: $3.1 billion - --Recovery expectations 0%-10% (rounded estimate: 5%) Note: All debt amounts include six months of prepetition interest....

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