NEW YORK (S&P Global Ratings) Jan. 29, 2020--S&P Global Ratings today said that Allied Universal Topco LLC's (B-/Stable/--) proposed $540 million add-on to its existing secured notes due 2026 will not affect our ratings on the company. Allied intends to use the proceeds from the add-on to repay the asset-based lending (ABL) borrowings it primarily used to fund its November 2019 purchase of SOS Security. We expect the acquisition to benefit the company's competitive position by expanding its service offerings to include executive protection services, increasing its penetration in high-density markets (i.e. California, New York, and Illinois), and expanding its blue-chip customer base. Pro forma for the transaction, the company's adjusted leverage was about 9x as of Sept. 30, 2019.
