...- U.K.-based Howden Group Holdings Ltd. (Howden) plans to raise ú860 million in new debt to acquire Align Financial Holdings (Align) and free up liquidity under its locked account and revolving credit facility (RCF). - We believe that Howden's strong underlying free operating cash flow (FOCF) and EBITDA generation can absorb the increased leverage and interest burden resulting from the proposed issuances, with the group's funds from operations (FFO) cash interest coverage remaining above 2.0x at 2.1x-2.3x in fiscal year (FY) ending Sept. 30, 2022-FY2023. - We affirmed our 'B' long-term issuer credit rating on Howden and its financing subsidiaries, HIG Finance 2 Ltd. and Hyperion Refinance S.a.r.l., and our 'B' issue rating on the group's first-lien term loans. The '3' recovery rating, reflecting meaningful recovery prospects (50%-70%), is unchanged. - The stable outlook indicates that Howden will continue to record strong underlying performance in 2022-2023 and will successfully integrate...
