S&P affirms USI

S&P said it removed its B long-term counterparty credit rating on USI Inc. from CreditWatch developing, where S&P placed it on June 27 following the company's announcement of its acquisition of Wells Fargo Insurance Services (WFIS), then affirmed the rating.

S&P also affirmed its B issue level rating on USI's senior secured credit facility, consisting of a $200 million revolving credit facility due 2022 and the upsized $2.41 billion term loan due 2024. The recovery rating remains 3, indicating an expectation for meaningful recovery for lenders in the event of payment default.

At the same time, S&P affirmed its CCC+ issue level rating on USI's $615 million senior notes due 2025.

“We consider this transaction to be transformational but believe that any incremental benefit to USI's competitive position would be mitigated by potential margin dilution and execution risk for up to two years following the closing,” S&P said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.