Bulletin: Allied Universal Topco LLC Ratings Unaffected By Pending Acquisition Of U.S. Security Associates Holdings Inc.

NEW YORK (S&P Global Ratings) July 17, 2018--S&P Global Ratings said today that its ratings and outlook on Allied Universal Topco LLC are unaffected by the proposed debt-financed acquisition of U.S. Security Associates Holdings Inc. for approximately $1 billion. We expect the transaction to be funded with approximately $800 million in new debt and $200 million in equity from existing sponsors, resulting in pro forma S&P Global Ratings adjusted debt leverage (excluding synergies) in the 11x area, down from around 12x as of the twelve months ended March 31, 2018. Although our ratings and outlook remain unchanged, we will reassess them once we receive additional information about the transaction and integration plan. We view integration risk as a possibility given

...NEW YORK (S&P Global Ratings) July 17, 2018--S&P Global Ratings said today that its ratings and outlook on Allied Universal Topco LLC are unaffected by the proposed debt-financed acquisition of U.S. Security Associates Holdings Inc. for approximately $1 billion. We expect the transaction to be funded with approximately $800 million in new debt and $200 million in equity from existing sponsors, resulting in pro forma S&P Global Ratings adjusted debt leverage (excluding synergies) in the 11x area, down from around 12x as of the twelve months ended March 31, 2018. Although our ratings and outlook remain unchanged, we will reassess them once we receive additional information about the transaction and integration plan. We view integration risk as a possibility given the missteps encountered in the 2016 Allied Barton merger, which included price increases that did not keep pace with wage rates, labor and productivity constraints, and weak cash flow. As with any large acquisition, attrition is...

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