Bulletin: WMB Holdings Inc.'s Proposed Repricing Of Its Term Loan B Facility Due 2029 Will Modestly Reduce Its Interest Expense

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Jan. 8, 2024--S&P Global Ratings today said that it believes WMB Holdings Inc.'s (d/b/a CSC) proposed repricing of its $1.190 billion (as of Sept. 30, 2023) term loan B (TLB) facility due 2029 will modestly reduce the company's interest expense. Concurrently, CSC will repay $90 million of its outstanding TLB using the proceeds from a new off-balance sheet accounts receivable securitization facility, which closed on Dec. 29, 2023. We typically view securitization facilities as debt-like, thus we include the outstanding amount under the facility in our S&P Global Ratings-adjusted debt calculation, which leads us to view the transaction as leverage neutral. However, the company's reduced covenant leverage

...January 8, 2024 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Jan. 8, 2024--S&P Global Ratings today said that it believes WMB Holdings Inc.'s (d/b/a CSC) proposed repricing of its $1.190 billion (as of Sept. 30, 2023) term loan B (TLB) facility due 2029 will modestly reduce the company's interest expense. Concurrently, CSC will repay $90 million of its outstanding TLB using the proceeds from a new off-balance sheet accounts receivable securitization facility, which closed on Dec. 29, 2023. We typically view securitization facilities as debt-like, thus we include the outstanding amount under the facility in our S&P Global Ratings-adjusted debt calculation, which leads us to view the transaction as leverage neutral. However, the company's reduced covenant leverage is approaching the next tier (less than 4.1x) of the pricing gride for its term loan A, which could provide it with an additional 25 basis point reduction in its interest expense. CSC's S&P Global...

Bulletin