Asurion LLC's Proposed $1.25 Billion Term Loan Rated 'B+' (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) Sep 9, 2024--S&P Global Ratings today assigned its 'B+' issue-level rating to Asurion LLC's proposed $1.25 billion term loan B-12 due 2030. We also assigned a '3' recovery rating, indicating our expectation of meaningful recovery (50%-70%; rounded estimate: 65%) in the event of payment default. All existing ratings, including the 'B+' issuer credit ratings on Asurion Group Inc., Asurion LLC, and Lonestar Intermediate Super Holdings LLC, are unchanged by the new debt issuance. We view this transaction as leverage neutral because Asurion intends to use proceeds from the new issuance to partially refinance $1.25 billion of its existing $3 billion B-8 term loan due December 2026. We expect the new financing to be priced on

...September 9, 2024 NEW YORK (S&P Global Ratings) Sep 9, 2024--S&P Global Ratings today assigned its 'B+' issue-level rating to Asurion LLC's proposed $1.25 billion term loan B-12 due 2030. We also assigned a '3' recovery rating, indicating our expectation of meaningful recovery (50%-70%; rounded estimate: 65%) in the event of payment default. All existing ratings, including the 'B+' issuer credit ratings on Asurion Group Inc., Asurion LLC, and Lonestar Intermediate Super Holdings LLC, are unchanged by the new debt issuance. We view this transaction as leverage neutral because Asurion intends to use proceeds from the new issuance to partially refinance $1.25 billion of its existing $3 billion B-8 term loan due December 2026. We expect the new financing to be priced on a SOFR benchmark and a higher spread, with all other terms identical to the company's existing first-lien term loans. Pro forma for the transaction, our adjusted debt to EBITDA is about 6.1x for the last 12 months ended June...

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