S&P: Willis Towers notes BBB

S&P said it assigned BBB ratings to the proposed $500 million senior unsecured notes due 2027 to be issued by Willis Towers Watson plc.

The notes will be issued from Willis North America Inc. and will be guaranteed by Willis Towers Watson and its other guarantor subsidiaries, S&P said.

Willis Towers will use the proceeds of the offering to partially pay down the outstanding balance on its $1.25 billion revolving credit facility, the agency said.

In March 2017, the company closed on this new $1.25 billion revolver facility due in 2022, replacing the $800 million facility that had been set to expire in 2018, S&P said.

The company has since used revolver borrowings to repay outstanding borrowings on its previous $800 million facility and refinance its $218 million term loan and $394 million 6.2% senior notes that matured in the first quarter of 2017, the agency said.

Given the expectation that the company will use proceeds of the proposed issuance to pay down revolver balance, S&P said it does not expect debt levels or financial leverage, which was 3.2x as of March 31, 2017, to change materially following the transaction.

The BBB long-term corporate credit rating on the company reflects its strong business risk profile and significant financial risk profile, the agency said.

The company derives its strong business position from its diversified global platform in benefits, risk and financial services, exchange solutions, and talent and rewards, S&P said.

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