Bulletin: Hyperion Insurance Group's $115 Million Add-On Is Credit Neutral

LONDON (S&P Global Ratings) Nov. 14, 2018--S&P Global Ratings said today that U.K.-based insurance intermediary Hyperion Insurance Group Ltd.'s proposed $115 million add-on to its term loan will give it scope to pay for future acquisitions. Our 'B' issue-level rating on Hyperion's existing senior secured debt is unchanged. The recovery rating on the senior secured term loan and revolving credit facility is also unchanged at '3', indicating our belief that lenders could expect meaningful (50%-70%, rounded estimate 50%) recovery in the event of payment default or bankruptcy. We expect Hyperion (B/Stable/--) to use the net proceeds from the proposed issuance to fund its locked account, which will be used for future acquisitions. The group has reported a solid operating performance,

...LONDON (S&P Global Ratings) Nov. 14, 2018--S&P Global Ratings said today that U.K.-based insurance intermediary Hyperion Insurance Group Ltd.'s proposed $115 million add-on to its term loan will give it scope to pay for future acquisitions. Our 'B' issue-level rating on Hyperion's existing senior secured debt is unchanged. The recovery rating on the senior secured term loan and revolving credit facility is also unchanged at '3', indicating our belief that lenders could expect meaningful (50%-70%, rounded estimate 50%) recovery in the event of payment default or bankruptcy. We expect Hyperion (B/Stable/--) to use the net proceeds from the proposed issuance to fund its locked account, which will be used for future acquisitions. The group has reported a solid operating performance, with organic growth of about 6% in the financial year ending September 2018 and adjusted EBITDA margins of about 21%. The upsizing has no impact on our forecast that Hyperion will report positive free operating...

Bulletin