Research Update: Maverick US 2, LLC (d/b/a Amentum) Assigned 'B' Issuer Credit Rating; Outlook Stable; Debt Rated 'B' (Recovery: '3')

American Securities LLC and Lindsay Goldberg LLC plan to acquire Maverick US 2, LLC (also known as Amentum) from AECOM for $2.4 billion, funded mostly with debt, resulting in adjusted leverage of 11.4x-11.8x after accounting for transaction-related fees and expenses. On Jan. 7, 2020, we assigned our 'B' issuer credit rating to Amentum. At the same time, we assigned our 'B' issue-level and '3' recovery ratings to the company's first-lien credit facility consisting of a $200 million revolver and a $1.015 billion first-lien term loan. The stable outlook reflects our expectation that debt leverage will decline significantly in 2021 (September fiscal year-end) to 5.4x-5.8x from 11.4x-11.8x in 2020, due to the absence of significant transaction-related fees and expenses that occur

...- American Securities LLC and Lindsay Goldberg LLC plan to acquire Maverick US 2, LLC (also known as Amentum) from AECOM for $2.4 billion, funded mostly with debt, resulting in adjusted leverage of 11.4x-11.8x after accounting for transaction-related fees and expenses. - On Jan. 7, 2020, we assigned our 'B' issuer credit rating to Amentum. - At the same time, we assigned our 'B' issue-level and '3' recovery ratings to the company's first-lien credit facility consisting of a $200 million revolver and a $1.015 billion first-lien term loan. - The stable outlook reflects our expectation that debt leverage will decline significantly in 2021 (September fiscal year-end) to 5.4x-5.8x from 11.4x-11.8x in 2020, due to the absence of significant transaction-related fees and expenses that occur in 2020....

Research Update