Bulletin: Asurion Group Inc. To Complete The Refinancing Of Its 2024 Term Loan

NEW YORK (S&P Global Ratings) July 24, 2023--Asurion Group Inc. (through its subsidiary Asurion LLC) is issuing a $550 million fungible add-on to its existing $1.2 billion term loan B-11 due 2028. We expect the company to use the proceeds, along with cash on the balance sheet, primarily to complete the refinancing of its B-7 term loan due 2024. The company had $993 million remaining as of the second quarter of 2023 following a partial refinancing earlier in the year (see "Asurion LLC's Proposed $1.0 Billion Term Loan Rated 'B+'," Feb. 7, 2023). We view the transaction as a modest credit positive given the elimination of 2024 maturities and nearly $450 million debt reduction. Following this transaction, the company will

...July 24, 2023 NEW YORK (S&P Global Ratings) July 24, 2023--Asurion Group Inc. (through its subsidiary Asurion LLC) is issuing a $550 million fungible add-on to its existing $1.2 billion term loan B-11 due 2028. We expect the company to use the proceeds, along with cash on the balance sheet, primarily to complete the refinancing of its B-7 term loan due 2024. The company had $993 million remaining as of the second quarter of 2023 following a partial refinancing earlier in the year (see "Asurion LLC's Proposed $1.0 Billion Term Loan Rated 'B+'," Feb. 7, 2023). We view the transaction as a modest credit positive given the elimination of 2024 maturities and nearly $450 million debt reduction. Following this transaction, the company will not have any debt maturities until late 2026. This transaction also satisfies the company's excess cash flow sweep requirement for the year. Pro forma for the transaction, S&P-adjusted leverage is 5.7x, a modest improvement from 6.1x at year-end 2022 given the...

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