Bulletin: Tempo Acquisition LLC's Proposed Term Loan Repricing Will Reduce Its Interest Expense; Credit Quality Remains Stable

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Jan. 23, 2025--S&P Global Ratings today said that Tempo Acquisition LLC's (d/b/a Alight Solutions; BB-/Stable/--) proposed repricing of its $2.03 billion term loan B due 2028 will reduce the company's interest expense by approximately $5 million-$10 million. We continue to forecast Alight's EBITDA interest coverage will be in the mid-single digit percent area over the next 12 months, which is commensurate with our 'BB-' issuer credit rating and stable outlook. The ratings on Alight continue to reflect our expectation it will expand its EBITDA margins as it benefits from the cost savings related to its completed cloud migration and focuses on its higher margin segment following a

...January 23, 2025 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Jan. 23, 2025--S&P Global Ratings today said that Tempo Acquisition LLC's (d/b/a Alight Solutions; ##-/Stable/--) proposed repricing of its $2.03 billion term loan B due 2028 will reduce the company's interest expense by approximately $5 million- $10 million. We continue to forecast Alight's EBITDA interest coverage will be in the mid-single digit percent area over the next 12 months, which is commensurate with our '##-' issuer credit rating and stable outlook. The ratings on Alight continue to reflect our expectation it will expand its EBITDA margins as it benefits from the cost savings related to its completed cloud migration and focuses on its higher margin segment following a business divestiture last year. As a result of these tailwinds, we forecast the company's S&P Global Ratings-adjusted EBITDA margins will reach about 20% in 2025 while it maintains leverage below 5x. Despite the expected...

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