Jefferies Finance LLC's Proposed $500 Million Senior Secured Notes Due 2031 Rated 'BB-'

TORONTO (S&P Global Ratings) Oct. 7, 2024--S&P Global Ratings today assigned its 'BB-' issue-level rating to Jefferies Finance LLC's (JFIN) proposed $500 million senior secured notes due 2031. The company plans to use the net proceeds from the senior notes--together with proceeds from the new senior secured term loan facility, secured revolving credit facility, and cash on hand--to refinance the outstanding amount on its existing $1.65 billion senior secured revolver, pay down $250 million of junior subordinated loan, and for general corporate purposes. In an event of default, the $500 million secured revolving credit facility will have a priority claim over the proposed senior secured notes and $950 million senior secured term loan B. The proposed senior notes and senior

...October 7, 2024 TORONTO (S&P Global Ratings) Oct. 7, 2024--S&P Global Ratings today assigned its '##-' issue-level rating to Jefferies Finance LLC's (JFIN) proposed $500 million senior secured notes due 2031. The company plans to use the net proceeds from the senior notes--together with proceeds from the new senior secured term loan facility, secured revolving credit facility, and cash on hand--to refinance the outstanding amount on its existing $1.65 billion senior secured revolver, pay down $250 million of junior subordinated loan, and for general corporate purposes. In an event of default, the $500 million secured revolving credit facility will have a priority claim over the proposed senior secured notes and $950 million senior secured term loan B. The proposed senior notes and senior secured term loan B will be pari passu in rights of claim. Based on the preliminary numbers as of Aug. 31, 2024, JFIN's leverage (as measured by debt to adjusted total equity [ATE]) is 2.6x. Pro forma,...

Ratings Action