Osaic Holdings Inc.'s Proposed $1.65 Billion Senior Secured Term Loan Rated 'B'

NEW YORK (S&P Global Ratings) Aug. 3, 2023--S&P Global Ratings today assigned its 'B' issue rating to Osaic Holdings Inc.'s (B/Stable/--) proposed $1.65 billion senior secured five-year term loan. The proceeds of the new loan will be used to repay fully the existing $1.448 billion term bank loan (maturing May 2026) with the remainder to be spent on general corporate purposes, including bolt-on acquisitions. The net new additional debt of about $200 million, resulting from this transaction, will have no rating impact because we don't expect it to materially erode the company's leverage or debt service coverage metrics. Even with this additional debt, we expect adjusted debt to EBITDA to remain below 5.5x in 2023, in line with our 'B'

...August 3, 2023 NEW YORK (S&P Global Ratings) Aug. 3, 2023--S&P Global Ratings today assigned its 'B' issue rating to Osaic Holdings Inc.'s (B/Stable/--) proposed $1.65 billion senior secured five-year term loan. The proceeds of the new loan will be used to repay fully the existing $1.448 billion term bank loan (maturing May 2026) with the remainder to be spent on general corporate purposes, including bolt-on acquisitions. The net new additional debt of about $200 million, resulting from this transaction, will have no rating impact because we don't expect it to materially erode the company's leverage or debt service coverage metrics. Even with this additional debt, we expect adjusted debt to EBITDA to remain below 5.5x in 2023, in line with our 'B' rating assessment and current stable outlook. This is mainly because cash sweep revenue continues to benefit from the rapid increase in short-term interest rates. In our view, the debt service coverage ratio of just above 2.0x will continue to...

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