Jefferies Finance LLC (JFIN) is refinancing its existing $1.65 billion senior secured revolver and paying down $250 million of junior subordinated loan. It's doing so by issuing $1.45 billion in new credit facilities--specifically, a $500 million priority revolving credit facility and a $950 million senior secured term loan B. Pro forma, we expect JFIN's leverage (as measured by debt to adjusted total equity) to be approximately 2.8x. As a result, we affirmed our issuer credit rating of 'BB-'. The stable outlook reflects JFIN's improved operating performance, its reduced asset quality risk, and our expectation that it will maintain adequate liquidity and leverage between 2.75x and 4.5x. At the same time, we assigned an issue-level rating of 'BB-' to the new
