Bulletin: Hyperion Insurance Group Credit Facility Ratings Unchanged On $130 Million Add-On

LONDON (S&P Global Ratings) March 18, 2019--S&P Global Ratings said today that it anticipates that the upsizing of U.K.-based insurance intermediary Hyperion Insurance Group Ltd.'s senior secured debt will not affect its ability to report positive free operating cash flow while maintaining funds from operations cash interest coverage above 2.5x. Our 'B' issue-level rating and '3' recovery rating on Hyperion's existing senior secured debt is unchanged. The company plans to issue a $130 million add-on to its term loan. We expect it to use the net proceeds to fund its locked account, which is used to fund acquisitions. For example, Hyperion could use it to make investments, such as the recently announced partnership with Matrix, and to pay deferred consideration

...LONDON (S&P Global Ratings) March 18, 2019--S&P Global Ratings said today that it anticipates that the upsizing of U.K.-based insurance intermediary Hyperion Insurance Group Ltd.'s senior secured debt will not affect its ability to report positive free operating cash flow while maintaining funds from operations cash interest coverage above 2.5x. Our 'B' issue-level rating and '3' recovery rating on Hyperion's existing senior secured debt is unchanged. The company plans to issue a $130 million add-on to its term loan. We expect it to use the net proceeds to fund its locked account, which is used to fund acquisitions. For example, Hyperion could use it to make investments, such as the recently announced partnership with Matrix, and to pay deferred consideration payments on previously announced deals during the course of 2019. The group last upsized its facilities to fund its locked account in November 2018; the account was subsequently depleted by the acquisition of Punter Southall in the...

Bulletin