Bulletin: Osaic's Financing Plan To Acquire Lincoln's Wealth Management Won't Notably Change Leverage Or Debt Service Capacity

NEW YORK (S&P Global Ratings) Feb. 1, 2024--S&P Global Ratings said today that Osaic Holdings Inc.'s (B/Stable/--) financing plan to acquire Lincoln Financial Group's independent broker-dealer and registered investment advisory firms for about $1.04 billion (including estimated transaction costs and retention loans to Lincoln financial advisors) won't materially change Osaic's leverage or debt servicing capacity. We expect Osaic's adjusted debt-to-EBITDA ratio post-acquisition to remain 5.0x-5.5x with adjusted EBITDA-to-interest expense above 2.0x. This results from Osaic's planned use of cash on the balance sheet as well as a new equity injection to together fund approximately 50% of the acquisition. In addition, we view the new cash equity as a sign of the private equity owner's commitment to its investment in Osaic.

...February 1, 2024 NEW YORK (S&P Global Ratings) Feb. 1, 2024--S&P Global Ratings said today that Osaic Holdings Inc.'s (B/Stable/--) financing plan to acquire Lincoln Financial Group's independent broker-dealer and registered investment advisory firms for about $1.04 billion (including estimated transaction costs and retention loans to Lincoln financial advisors) won't materially change Osaic's leverage or debt servicing capacity. We expect Osaic's adjusted debt-to-EBITDA ratio post-acquisition to remain 5.0x-5.5x with adjusted EBITDA-to-interest expense above 2.0x. This results from Osaic's planned use of cash on the balance sheet as well as a new equity injection to together fund approximately 50% of the acquisition. In addition, we view the new cash equity as a sign of the private equity owner's commitment to its investment in Osaic. We view the acquisition of Lincoln's wealth management arm--if successfully executed--and Osaic's ongoing "Journey to One" integration project as potentially...

Bulletin