Bulletin: Allied Universal Holdco LLC Eliminates 2026 Maturities And Frees Up Liquidity With Proposed Refinancing

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Aug. 1, 2024--S&P Global Ratings today said Allied Universal Holdco LLC's (B/Stable/--) proposed leverage-neutral transaction is modestly credit positive. The company is issuing add-on senior secured notes due 2031, using the proceeds to redeem its remaining $206 million outstanding 2026 notes and pay down borrowings under its asset-based lending facility. The proposed transaction is the final deal in a series over the course of this year aimed at reducing and now eliminating its 2026 notes ($1.94 billion was outstanding at the end of 2023). In addition to improving its maturity profile, this will strengthen Allied?s already solid liquidity position. We expect management to turn its attention to

...August 1, 2024 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Aug. 1, 2024--S&P Global Ratings today said Allied Universal Holdco LLC's (B/Stable/--) proposed leverage-neutral transaction is modestly credit positive. The company is issuing add-on senior secured notes due 2031, using the proceeds to redeem its remaining $206 million outstanding 2026 notes and pay down borrowings under its asset-based lending facility. The proposed transaction is the final deal in a series over the course of this year aimed at reducing and now eliminating its 2026 notes ($1.94 billion was outstanding at the end of 2023). In addition to improving its maturity profile, this will strengthen Allied's already solid liquidity position. We expect management to turn its attention to addressing its over $10 billion of debt maturing in 2027 and 2028. All our ratings on Allied are unchanged. We continue to anticipate a trend of gradually declining leverage and improving free cash flow...

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