Research Update: Howden Group Holdings Ltd. 'B' Ratings Affirmed On Refinancing And Debt Issuance; Outlook Stable

U.K.-based insurance broker Howden Group Holdings Ltd. (Howden) plans to raise $3,435million (£2,816 million) via a senior secured seven-year USD term loan B, €660 million (£571 million) via a seven-year EUR term loan B, $750 million (£615 million) via seven-year senior secured notes (SSN), and $500 million (£410 million) via eight-year senior unsecured notes (SUN) to refinance its existing £3.5 billion first-lien term loan and £373 million second-lien term loan, reprice its existing $1.1 billion USD term loan, raise an incremental $591 million (£484 million) to prefund mergers and acquisitions (M&As), and fund its lockbox account for future M&As. The group also upsizes its revolving credit facility (RCF) to £630 million, from £360 million, and extends its maturity to 6.5

...- U.K.-based insurance broker Howden Group Holdings Ltd. (Howden) plans to raise $3,435million (ú2,816 million) via a senior secured seven-year USD term loan B, 660 million (ú571 million) via a seven-year EUR term loan B, $750 million (ú615 million) via seven-year senior secured notes (SSN), and $500 million (ú410 million) via eight-year senior unsecured notes (SUN) to refinance its existing ú3.5 billion first-lien term loan and ú373 million second-lien term loan, reprice its existing $1.1 billion USD term loan, raise an incremental $591 million (ú484 million) to prefund mergers and acquisitions (M&As), and fund its lockbox account for future M&As. - The group also upsizes its revolving credit facility (RCF) to ú630 million, from ú360 million, and extends its maturity to 6.5 years. - Despite relatively higher S&P Global Ratings-adjusted leverage, compared with our previous expectations, we expect Howden will deleverage and generate sound positive free operating cash flow (FOCF), on the...

Research Update