Bulletin: UKG Inc. Ratings Unchanged On $1.0 Billion First-Lien Term Loan Add-On And $1.1 Billion Second-Lien Term Loan Add-On

SAN FRANCISCO (S&P Global Ratings) Nov. 10, 2021--S&P Global Ratings today said that its ratings and outlook on Weston, Fla.-based UKG Inc. (B-/Stable/--) are unaffected by the company's proposed $1.0 billion add-on to its non-fungible first-lien term loan and $1.1 billion add-on to its non-fungible second-lien term loan. UKG will also refinance its second-lien debt tranche and pay off its privately placed $600 million second-lien term loan using the proceeds from the incremental second-lien debt. Despite the increase in its debt, our forecast for UKG's fiscal-year 2022 credit metrics is only slightly affected by the transaction. The company's revenue and EBITDA exceeded our expectations in fiscal year 2021 and were in line with management's guidance. As such, we have raised

...November 10, 2021 SAN FRANCISCO (S&P Global Ratings) Nov. 10, 2021--S&P Global Ratings today said that its ratings and outlook on Weston, Fla.-based UKG Inc. (B-/Stable/--) are unaffected by the company's proposed $1.0 billion add-on to its non-fungible first-lien term loan and $1.1 billion add-on to its non-fungible second-lien term loan. UKG will also refinance its second-lien debt tranche and pay off its privately placed $600 million second-lien term loan using the proceeds from the incremental second-lien debt. Despite the increase in its debt, our forecast for UKG's fiscal-year 2022 credit metrics is only slightly affected by the transaction. The company's revenue and EBITDA exceeded our expectations in fiscal year 2021 and were in line with management's guidance. As such, we have raised our fiscal-year 2022 revenue and EBITDA forecast. While we previously expected UKG to report leverage of about 9.0x in fiscal year 2022, we now anticipate its leverage will be about 10.5x because the...

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