Valvoline Inc. plans to issue a seven-year $650 million term loan B facility to fund its $625 million acquisition of Breeze Autocare, expected to close in the company?s fiscal 2025 third quarter. Pro forma for the transaction, S&P Global Ratings-adjusted leverage will increase to the high-4x area, though we anticipate leverage improving to below 4x over the next 12 to 18 months. We affirmed our ?BB? issuer credit rating and our ?B+? issue-level rating on Valvoline?s unsecured debt. We lowered our issue-level rating on the company?s senior secured debt to ?BB? from ?BBB-?, and revised our recovery rating to ?3? from ?1?. This reflects the increase in secured debt. Concurrently, we assigned our ?BB? rating and ?3? recovery rating to
