Research Update: Verisure Affirmed At 'B' On Proposed Refinancing And Dividend Payment, Balanced By Strong EBITDA Growth Prospects

Alarm monitoring service provider Verisure Midholding AB (Verisure) plans to issue €4.42 billion of senior secured and unsecured debt to refinance €2.7 billion of existing debt and fund a dividend distribution of €1.6 billion. At the same time, we expect continued solid 10%-20% annual growth in adjusted EBITDA over the next few years, supported by robust subscriber growth in an under-penetrated European market. As a result, we expect that S&P Global Ratings-adjusted debt to EBITDA will peak at around 7.8x post-closing in January 2021 before declining to around 7.2x at year-end 2021 and toward 6.0x in 2022. We are therefore affirming our 'B' issuer credit rating on Verisure. We are also assigning our 'B' issue rating to its proposed senior

...- Alarm monitoring service provider Verisure Midholding AB (Verisure) plans to issue 4.42 billion of senior secured and unsecured debt to refinance 2.7 billion of existing debt and fund a dividend distribution of 1.6 billion. - At the same time, we expect continued solid 10%-20% annual growth in adjusted EBITDA over the next few years, supported by robust subscriber growth in an under-penetrated European market. - As a result, we expect that S&P Global Ratings-adjusted debt to EBITDA will peak at around 7.8x post-closing in January 2021 before declining to around 7.2x at year-end 2021 and toward 6.0x in 2022. - We are therefore affirming our 'B' issuer credit rating on Verisure. We are also assigning our 'B' issue rating to its proposed senior secured debt and '###+' issue rating to its proposed senior unsecured debt. The senior secured debt is issued by Verisure Holding AB while the senior unsecured debt is issued by Verisure Midholding AB, similar to the existing structure. - The stable...

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