Fitch gives UL Solutions notes BBB+

Fitch Ratings said it assigned a BBB+ rating to UL Solutions Inc.'s proposed senior unsecured note issuance.

The notes will rank pari passu with existing debt.

UL intends to use the net proceeds of the offering to fund a special dividend to ULSE Inc., its sole shareholder, and for other general corporate purposes.

“The special dividend is part of a series of extraordinary transactions undertaken in the context of the corporate restructuring of the UL group to set up an endowment of its charitable organization,” the agency said in a news release.

“Fitch expects UL's EBITDA leverage to be below 2.0x, pro forma for the bond issuance. FCF margins are forecast to be close to mid-single digits in 2024 and beyond.”

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