Research Update: Zebra Buyer LLC (d/b/a Wells Fargo Asset Management) Assigned 'BB-' Ratings; Outlook Stable

Zebra Buyer LLC (d/b/a Wells Fargo Asset Management), an asset manager with over $600 billion in assets under management as of Dec. 31, 2020, is being acquired by GTCR LLC and Reverence Capital Partners L.P. The transaction, valued at approximately $2.1 billion, will be funded with the issuance of a $1.24 billion first-lien term loan, an equity contribution from the financial sponsors, and equity rollovers from Wells Fargo and employees. We assigned our 'BB-' issuer credit rating to Zebra Buyer LLC and our 'BB-' issue rating to the company's proposed first-lien senior secured term loan. The stable outlook reflects our expectation that the company, over the next 12 months, will operate with debt to adjusted EBITDA of 4x-5x while exhibiting

...- Zebra Buyer LLC (d/b/a Wells Fargo Asset Management), an asset manager with over $600 billion in assets under management as of Dec. 31, 2020, is being acquired by GTCR LLC and Reverence Capital Partners L.P. - The transaction, valued at approximately $2.1 billion, will be funded with the issuance of a $1.24 billion first-lien term loan, an equity contribution from the financial sponsors, and equity rollovers from Wells Fargo and employees. - We assigned our '##-' issuer credit rating to Zebra Buyer LLC and our '##-' issue rating to the company's proposed first-lien senior secured term loan. - The stable outlook reflects our expectation that the company, over the next 12 months, will operate with debt to adjusted EBITDA of 4x-5x while exhibiting modest organic growth, good investment performance, and an improvement in profitability metrics....

Research Update