Bulletin: The Baldwin Insurance Group Inc.'s Proposed Term Loan Add-On Will Not Negatively Affect Credit Metrics

NEW YORK (S&P Global Ratings) Dec. 13, 2024--S&P Global Ratings expects The Baldwin Insurance Group Inc.'s (BWIN) proposed $100 million incremental add-on to its $838 million term loan due 2031 (issued by subsidiary The Baldwin Insurance Group Holdings LLC) will be used to pay earnouts. As earnouts are included in our calculation of debt, we think the proposed term loan add-on will ultimately be leverage neutral. We also expect BWIN to obtain more favorable pricing terms, which should benefit the company's overall cost of capital. Pro forma the proposed issuance and expected paydown of earnouts in early 2025, we estimate S&P Global Ratings-adjusted leverage of about 7.0x and interest coverage near 2.0x for the 12 months ended Sept. 30, 2024.

...December 13, 2024 NEW YORK (S&P Global Ratings) Dec. 13, 2024--S&P Global Ratings expects The Baldwin Insurance Group Inc.'s (BWIN) proposed $100 million incremental add-on to its $838 million term loan due 2031 (issued by subsidiary The Baldwin Insurance Group Holdings LLC) will be used to pay earnouts. As earnouts are included in our calculation of debt, we think the proposed term loan add-on will ultimately be leverage neutral. We also expect BWIN to obtain more favorable pricing terms, which should benefit the company's overall cost of capital. Pro forma the proposed issuance and expected paydown of earnouts in early 2025, we estimate S&P Global Ratings-adjusted leverage of about 7.0x and interest coverage near 2.0x for the 12 months ended Sept. 30, 2024. In April, we revised our outlook on the issuer credit rating to positive from stable based on our expectations for continued favorable performance and meaningfully improved credit metrics (including leverage below 7x and coverage near...

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