NEWAsurion Corp. And Subsidiaries

Good market position and strong operating performance Well-integrated and effective business model Experienced and knowledgeable management team Dependence on contract renewals and subscriber growth Highly leveraged capital structure Very aggressive financial policy stemming from private equity ownership Healthy cash flow generation with limited working capital or capital expenditure needs The positive outlook on NEWAsurion Corp., Lonestar Intermediate Super Holdings LLC (a wholly owned subsidiary of NEWAsurion), and Asurion LLC reflects Standard&Poor's Ratings Services' expectation that the company's continued earnings growth will result in an improved overall credit profile. For 2016, we expect revenue growth in the mid-single digits and an EBITDA margin of more than 20%, resulting in a debt-to-EBITDA ratio of 5.5x–6.0x and EBITDA interest coverage of

...Healthy cash flow generation with limited working capital or capital expenditure needs Outlook The positive outlook on NEWAsurion Corp., Lonestar Intermediate Super Holdings LLC (a wholly owned subsidiary of NEWAsurion), and Asurion LLC reflects Standard & Poor's Ratings Services' expectation that the company's continued earnings growth will result in an improved overall credit profile. For 2016, we expect revenue growth in the mid-single digits and an EBITDA margin of more than 20%, resulting in a debt-to-EBITDA ratio of 5.5x¡6.0x and EBITDA interest coverage of at least 2.5x. While NEWAsurion will fund its proposed reduction of private-equity ownership through equity, if the company were to fund any future reduction through further debt issuance, we anticipate that leverage will not exceed 7x....

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