Bulletin: Applied Systems Inc. Ratings Unchanged On Announced Term Loan Add-On

This report does not constitute a rating action. TORONTO (S&P Global Ratings) Sept. 2, 2025--S&P Global Ratings said today that its ratings and outlook on Chicago, Ill.-based property and casualty broker management systems provider Applied Systems Inc. (B-/Stable/--) are unchanged following the company's proposed $305 million term loan add on to fund an acquisition. The add-on will be fungible with Applied's existing term loan due 2031. Our 'B-' issue-level rating and '3' recovery rating on the company's first-lien debt and 'CCC' issue-level rating and '6' recovery rating on the second-lien debt are also unchanged. We expect the incremental debt will increase Applied Systems? pro forma leverage by about 0.8x to the low- to mid-8x range for fiscal 2025. However, we

...September 2, 2025 This report does not constitute a rating action. TORONTO (S&P Global Ratings) Sept. 2, 2025--S&P Global Ratings said today that its ratings and outlook on Chicago, Ill.-based property and casualty broker management systems provider Applied Systems Inc. (B-/Stable/--) are unchanged following the company's proposed $305 million term loan add on to fund an acquisition. The add-on will be fungible with Applied's existing term loan due 2031. Our 'B-' issue-level rating and '3' recovery rating on the company's first-lien debt and '###' issue- level rating and '6' recovery rating on the second-lien debt are also unchanged. We expect the incremental debt will increase Applied Systems' pro forma leverage by about 0.8x to the low- to mid-8x range for fiscal 2025. However, we anticipate leverage will decline in the subsequent years given our expectation that the company will maintain strong revenue growth of 10%-12% range in fiscal 2025 and 2026. This is due to the company's ability...

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