Tear Sheet: Genuine Financial Holdings LLC

Genuine Financial Holdings LLC (doing business as HireRight) announced it entered into a definitive agreement to be acquired by investment funds affiliated with its two current financial sponsors, General Atlantic, L.P. and Stone Point Capital LLC. The two sponsors already own 75% of the company?s outstanding shares and will acquire the remaining 25% though this deal. We estimate the company may need to raise up to $230 million in new capital to finance this go-private transaction. If it is entirely debt-funded, it could raise HireRight?s S&P Global Ratings-adjusted leverage (6.7x as of the end of the third quarter of 2023) above the 7x tolerance we have at the current rating. However, using some of the $103 million cash (as of

...February 22, 2024 What's new: Genuine Financial Holdings LLC (doing business as HireRight) announced it entered into a definitive agreement to be acquired by investment funds affiliated with its two current financial sponsors, General Atlantic, L.P. and Stone Point Capital LLC. The two sponsors already own 75% of the company's outstanding shares and will acquire the remaining 25% though this deal. Why it matters: We estimate the company may need to raise up to $230 million in new capital to finance this go-private transaction. If it is entirely debt-funded, it could raise HireRight's S&P Global Ratings-adjusted leverage (6.7x as of the end of the third quarter of 2023) above the 7x tolerance we have at the current rating. However, using some of the $103 million cash (as of Sept. 30, 2023, the last reported quarter end) the company retained on its balance sheet could reduce the need for new debt financing and temper degradation to credit metrics given that we do not net when calculating...

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