Amentum Holdings LLC is planning to issue an incremental $1.293 billion first-lien term loan as part of the financing to fund its acquisition of PAE. The company will also upsize its existing revolving credit facility and has privately placed an incremental second-lien term loan. We affirmed our 'B' issuer credit rating on Amentum and revised our outlook to stable from negative. We also assigned our 'B' issue-level and '3' recovery ratings to the company's proposed incremental $1.293 billion first-lien term loan. Our ratings on the company's existing term loans are unchanged. The stable outlook reflects our expectation that the company's debt leverage, which will be elevated due to its acquisition of PAE, will be in the high-6x area in fiscal-year
