Research Update: AEA Holdings (Luxembourg) Sarl Assigned Preliminary 'BB' Rating; Outlook Stable

AEA Holdings (Luxembourg) Sarl (International SOS or ISOS) intends to refinance its existing debt with a new $700 million senior secured term loan B (TLB) maturing in 2028, and a $80 million senior secured revolving credit facility (RCF). Proceeds will be used to repay existing debt of $619 million, transaction fees of about $28 million, purchase minority interests of about $15 million, and prefund tax liabilities of about $8 million. We assigned our preliminary 'BB' long-term issuer credit rating to AEA Holdings (Luxembourg) Sarl and AEA International Holdings (Luxembourg) Sarl. We also assigned our preliminary 'BB' issue rating to the senior secured TLB. The recovery rating on the senior secured facility is '3', indicating our expectation of meaningful recovery (rounded

...- AEA Holdings (Luxembourg) Sarl (International SOS or ISOS) intends to refinance its existing debt with a new $700 million senior secured term loan B (TLB) maturing in 2028, and a $80 million senior secured revolving credit facility (RCF). - Proceeds will be used to repay existing debt of $619 million, transaction fees of about $28 million, purchase minority interests of about $15 million, and prefund tax liabilities of about $8 million. - We assigned our preliminary '##' long-term issuer credit rating to AEA Holdings (Luxembourg) Sarl and AEA International Holdings (Luxembourg) Sarl. We also assigned our preliminary '##' issue rating to the senior secured TLB. The recovery rating on the senior secured facility is '3', indicating our expectation of meaningful recovery (rounded estimate: 65%) in the event of a payment default. - The stable outlook reflects our expectation of S&P Global Ratings-adjusted leverage of about 3.8x and funds from operations (FFO) to debt of about 18% for fiscal...

Research Update