Aretec Group Inc.'s Senior Unsecured Notes Rated 'CCC' - S&P Global Ratings’ Credit Research

Aretec Group Inc.'s Senior Unsecured Notes Rated 'CCC'

Aretec Group Inc.'s Senior Unsecured Notes Rated 'CCC' - S&P Global Ratings’ Credit Research
Aretec Group Inc.'s Senior Unsecured Notes Rated 'CCC'
Published Mar 29, 2021
3 pages (1250 words) — Published Mar 29, 2021
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Abstract:

TORONTO (S&P Global Ratings) March 29, 2021--S&P Global Ratings today said it assigned its 'CCC' rating to Aretec Group Inc.'s (B-/Stable/--) new $400 million senior unsecured notes due 2029. Aretec will use proceeds from the senior unsecured notes, along with $125 million of incremental term loan and $50 million in cash on hand, to fund its previously announced acquisition of certain assets related to the independent financing channel of Voya Financial Advisors from Voya Financial Inc. and repay the $190 million second-lien term loan. We believe the credit metrics--pro forma leverage (as measured by debt to covenant EBITDA) of 5.75x-6.25x in 2020, up modestly from our previous expectation of 5.5x-6.0x, and pro forma debt service coverage of 2.5x-3.0x--are still commensurate

  
Brief Excerpt:

...March 29, 2021 TORONTO (S&P Global Ratings) March 29, 2021--S&P Global Ratings today said it assigned its '###' rating to Aretec Group Inc.'s (B-/Stable/--) new $400 million senior unsecured notes due 2029. Aretec will use proceeds from the senior unsecured notes, along with $125 million of incremental term loan and $50 million in cash on hand, to fund its previously announced acquisition of certain assets related to the independent financing channel of Voya Financial Advisors from Voya Financial Inc. and repay the $190 million second-lien term loan. We believe the credit metrics--pro forma leverage (as measured by debt to covenant EBITDA) of 5.75x-6.25x in 2020, up modestly from our previous expectation of 5.5x-6.0x, and pro forma debt service coverage of 2.5x-3.0x--are still commensurate with the 'B-' issuer credit rating (see "Aretec Group Inc. 'B-' Rating Affirmed On Acquisition Of Voya Financial Advisors' Assets; Outlook Remains Stable," March 25, 2021). We rate the senior unsecured...

  
Report Type:

Ratings Action

Ticker
1408726D
Issuer
Aretec Group Inc.
GICS
Investment Banking & Brokerage (40203020)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Aretec Group Inc.'s Senior Unsecured Notes Rated 'CCC'" Mar 29, 2021. Alacra Store. May 02, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Aretec-Group-Inc-s-Senior-Unsecured-Notes-Rated-CCC-2619140>
  
APA:
S&P Global Ratings’ Credit Research. (). Aretec Group Inc.'s Senior Unsecured Notes Rated 'CCC' Mar 29, 2021. New York, NY: Alacra Store. Retrieved May 02, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Aretec-Group-Inc-s-Senior-Unsecured-Notes-Rated-CCC-2619140>
  
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