Research Update: Howden Group Holdings Ltd. 'B' Ratings Affirmed On TigerRisk Acquisition; Outlook Stable

U.K.-based Howden Group Holdings Ltd. plans to raise £490 million of new debt to acquire TigerRisk and fund its locked account for future mergers and acquisitions (M&A) by £202 million. The transaction will also involve a material equity contribution, with £716 million of ordinary equity issued and £142 million in management-rolled equity. Howden has a strong track record of performing acquisitions and integrating these into its business model. As such, we believe that while leverage will increase materially in the financial year (FY) 2022 ending Sept. 30. Howden will be able to reduce this over FY2023-FY2024. The transaction is consistent with Howden's aggressive strategy of expansion as the additional recent acquisitions of Align Financial Holdings and Aston Lark portray. We

...- U.K.-based Howden Group Holdings Ltd. plans to raise ú490 million of new debt to acquire TigerRisk and fund its locked account for future mergers and acquisitions (M&A) by ú202 million. The transaction will also involve a material equity contribution, with ú716 million of ordinary equity issued and ú142 million in management-rolled equity. - Howden has a strong track record of performing acquisitions and integrating these into its business model. As such, we believe that while leverage will increase materially in the financial year (FY) 2022 ending Sept. 30. Howden will be able to reduce this over FY2023-FY2024. The transaction is consistent with Howden's aggressive strategy of expansion as the additional recent acquisitions of Align Financial Holdings and Aston Lark portray. - We have therefore 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 and '3' recovery rating on...

Research Update