Bulletin: BRP Group Inc.'s Planned $100 Million Term Loan Add-On For Revolver Repayment Will Improve Liquidity

NEW YORK (S&P Global Ratings) Sept. 7, 2023--S&P Global Ratings said today that BRP Group Inc.'s (B-/Stable/--) planned $100 million fungible add-on to its existing $850 million term loan due 2027 won't affect ratings. We expect the company to use the proceeds to repay a portion of the outstanding balance on its $600 million revolving credit facility. Given the use of proceeds, this is a leverage-neutral transaction that will improve liquidity slightly by freeing up the revolver's capacity. The company drew on its revolving credit facility significantly in the second quarter of 2022 to fund its largest acquisition to date, Westwood Insurance Agency. Since completing the deal, BRP has incrementally paid down the balance–-borrowings declined from $525 million as of

...September 7, 2023 NEW YORK (S&P Global Ratings) Sept. 7, 2023--S&P Global Ratings said today that BRP Group Inc.'s (B-/Stable/--) planned $100 million fungible add-on to its existing $850 million term loan due 2027 won't affect ratings. We expect the company to use the proceeds to repay a portion of the outstanding balance on its $600 million revolving credit facility. Given the use of proceeds, this is a leverage-neutral transaction that will improve liquidity slightly by freeing up the revolver's capacity. The company drew on its revolving credit facility significantly in the second quarter of 2022 to fund its largest acquisition to date, Westwood Insurance Agency. Since completing the deal, BRP has incrementally paid down the balance¡-borrowings declined from $525 million as of the second quarter of 2022 to $470 million as of the second quarter of 2023. Pro forma this proposed issuance, S&P-adjusted leverage for the 12 months ended June 30, 2023, was 9.5x-¡a modest improvement from 9.9x...

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