Bulletin: BRP Group Inc.'s Announced $250 Million First-Lien Term Loan Add-On Does Not Affect Ratings

NEW YORK (S&P Global Ratings) Dec. 6, 2021--S&P Global Ratings today said its issuer credit rating on BRP Group Inc. (B/Stable/--) is unchanged following the company's announcement that it is issuing (through borrowing entity Baldwin Risk Partners LLC) a proposed $250 million fungible add-on to its existing $500 million first-lien term loan due 2027. The 'B' issue rating and '3' recovery rating (50%-70%; rounded estimate: 50%) also are unchanged. We expect BRP to use proceeds from the add-on to partially repay revolver borrowings, leaving total debt outstanding unchanged. Including annualized EBITDA contributions from new partners, estimated earnout liabilities, and associated debt drawn to fund 2021 acquisitions, pro forma leverage for the 12 months ended Sept. 30, 2021, is approximately 7.5x.

...December 6, 2021 NEW YORK (S&P Global Ratings) Dec. 6, 2021--S&P Global Ratings today said its issuer credit rating on BRP Group Inc. (B/Stable/--) is unchanged following the company's announcement that it is issuing (through borrowing entity Baldwin Risk Partners LLC) a proposed $250 million fungible add-on to its existing $500 million first-lien term loan due 2027. The 'B' issue rating and '3' recovery rating (50%-70%; rounded estimate: 50%) also are unchanged. We expect BRP to use proceeds from the add-on to partially repay revolver borrowings, leaving total debt outstanding unchanged. Including annualized EBITDA contributions from new partners, estimated earnout liabilities, and associated debt drawn to fund 2021 acquisitions, pro forma leverage for the 12 months ended Sept. 30, 2021, is approximately 7.5x. Although leverage is trending higher than our expectations, we believe BRP will reduce leverage to approximately 7.0x in 2022, supported by organic growth and accretive partnership...

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