Research Update: Verisure Midholding AB's 'B+' Rating Affirmed On Proposed Refinancing And New Financial Policy; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Verisure Midholding AB's 'B+' Rating Affirmed On Proposed Refinancing And New Financial Policy; Outlook Stable

Research Update: Verisure Midholding AB's 'B+' Rating Affirmed On Proposed Refinancing And New Financial Policy; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Verisure Midholding AB's 'B+' Rating Affirmed On Proposed Refinancing And New Financial Policy; Outlook Stable
Published Apr 24, 2024
8 pages (3286 words) — Published Apr 24, 2024
Price US$ 225.00  |  Buy this Report Now

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Abstract:

On April 24, 2024, monitored alarm service provider Verisure Midholding AB (Verisure) launched a €1 billion leverage neutral refinancing transaction, including a term loan facility with maturity in 2030 and other senior secured debt to refinance its €800 million term loan B maturing in 2026 and €200 million drawn revolving credit facility (RCF). The company recently introduced a new leverage target of below 4.5x (approximately 5.0x S&P Global Ratings-adjusted). Given the strong growth trajectory of the company's topline and EBITDA, we expect Verisure's leverage to decline from 5.7x at year-end 2023 to 5.2x end-2024 on an S&P Global Ratings-adjusted basis. Free operating cash flow (FOCF) is expected to remain at about breakeven. We therefore affirmed our 'B+' long-term issuer credit

  
Brief Excerpt:

...- On April 24, 2024, monitored alarm service provider Verisure Midholding AB (Verisure) launched a 1 billion leverage neutral refinancing transaction, including a term loan facility with maturity in 2030 and other senior secured debt to refinance its 800 million term loan B maturing in 2026 and 200 million drawn revolving credit facility (RCF). - The company recently introduced a new leverage target of below 4.5x (approximately 5.0x S&P Global Ratings-adjusted). Given the strong growth trajectory of the company's topline and EBITDA, we expect Verisure's leverage to decline from 5.7x at year-end 2023 to 5.2x end-2024 on an S&P Global Ratings-adjusted basis. Free operating cash flow (FOCF) is expected to remain at about breakeven. - We therefore affirmed our 'B+' long-term issuer credit rating on Verisure. We also affirmed our 'B+' issue ratings on its senior secured debt and our 'B-' issue ratings on its senior unsecured debt. - We assigned our 'B+' issue rating to Verisure's proposed senior...

  
Report Type:

Research Update

Ticker
1333653D
Issuer
Verisure Midholding AB
Sector
Global Issuers
Country
Sweden
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Verisure Midholding AB's 'B+' Rating Affirmed On Proposed Refinancing And New Financial Policy; Outlook Stable" Apr 24, 2024. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Verisure-Midholding-AB-s-B-Rating-Affirmed-On-Proposed-Refinancing-And-New-Financial-Policy-Outlook-Stable-3157507>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Verisure Midholding AB's 'B+' Rating Affirmed On Proposed Refinancing And New Financial Policy; Outlook Stable Apr 24, 2024. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Verisure-Midholding-AB-s-B-Rating-Affirmed-On-Proposed-Refinancing-And-New-Financial-Policy-Outlook-Stable-3157507>
  
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