Research Update: Genuine Financial Holdings LLC Assigned 'B' Corporate Credit Rating Following Corporate Risk Holdings Acquisition

Private equity firms General Atlantic Service Co. L.P. and Stone Point Capital LLC have agreed to acquire Corporate Risk Holdings, the parent company of U.S.-based background screening provider HireRight. The sponsors intend to combine HireRight with General Information Services, an existing General Atlantic portfolio company. The new entity will operate under the name Genuine Financial Holdings. The transaction will be funded with $310 million of balance sheet cash, an $835 million first-lien term loan, $215 million second-lien term loan, and $592 million in common equity contributed by the sponsors. We assigned our 'B' corporate credit rating to Genuine Financial Holdings. At the same time, we assigned our 'B' issue-level and '3' recovery rating to the company's proposed first-lien credit facility.

...+ Private equity firms General Atlantic Service Co. L.P. and Stone Point Capital LLC have agreed to acquire Corporate Risk Holdings, the parent company of U.S.-based background screening provider HireRight. + The sponsors intend to combine HireRight with General Information Services, an existing General Atlantic portfolio company. The new entity will operate under the name Genuine Financial Holdings. + The transaction will be funded with $310 million of balance sheet cash, an $835 million first-lien term loan, $215 million second-lien term loan, and $592 million in common equity contributed by the sponsors. + We assigned our 'B' corporate credit rating to Genuine Financial Holdings. At the same time, we assigned our 'B' issue-level and '3' recovery rating to the company's proposed first-lien credit facility. We also assigned our '###+' issue-level and '6' recovery rating to the proposed second-lien credit facility. + The stable outlook reflects our expectation that the merger will proceed...

Research Update