NEW YORK (S&P Global Ratings) July 9, 2020--S&P Global Ratings today said that Allied Universal Holdco LLC's (B-/Stable/--) proposed $400 million add-on to its existing secured notes due 2026 will not affect our ratings on the company. The notes rank parri passu in right of payment and collateral liens with existing the senior secured credit facilities. The company intends to use the proceeds from the add-on for future tuck-in acquisitions and general corporate purposes. We believe Allied Universal will be resilient during the current economic downturn with revenue growth outpacing U.S. GDP and expanding margins from lower labor costs. Pro forma for the transaction, leverage (S&P Global Ratings'-adjusted debt to EBITDA) will be in the high-8x area to low-9x area
