Research Update: Alight Solutions LLC Upgraded To 'B+' Following Merger With Special-Purpose Acquisition Company; Outlook Stable

Lincolnshire, Ill.-based human capital management solutions provider Alight Solutions LLC's merger with special purpose acquisition company (SPAC) Foley Trasimene Acquisition Corp. has closed following shareholder approval secured on June 30, 2021. Alight will use the transaction net proceeds of about $2.68 billion to repay about $1.786 billion of debt including $556 million of senior secured debt and all $1.23 billion of it senior unsecured notes, which will improve its pro forma leverage (S&P Global Ratings-adjusted) to the mid-5x from over 9x previously. The terms of the transaction are substantially similar to those we initially expected, notwithstanding modest SPAC redemptions. As a result, we raised our issuer credit rating on Alight by one notch to 'B+' from 'B' and our senior

...- Lincolnshire, Ill.-based human capital management solutions provider Alight Solutions LLC's merger with special purpose acquisition company (SPAC) Foley Trasimene Acquisition Corp. has closed following shareholder approval secured on June 30, 2021. - Alight will use the transaction net proceeds of about $2.68 billion to repay about $1.786 billion of debt including $556 million of senior secured debt and all $1.23 billion of it senior unsecured notes, which will improve its pro forma leverage (S&P Global Ratings-adjusted) to the mid-5x from over 9x previously. The terms of the transaction are substantially similar to those we initially expected, notwithstanding modest SPAC redemptions. - As a result, we raised our issuer credit rating on Alight by one notch to 'B+' from 'B' and our senior secured credit facility issue-level rating by two notches to '##-' from 'B'. We revised the recovery rating on the senior secured debt to '2' from '3', reflecting the reduction in secured debt in Alight's...

Research Update