S&P rates OM Asset notes BBB-

S&P said it assigned a BBB- rating on OM Asset Management plc's proposed $250 million senior notes due in 2026.

The company’s issuer credit rating is BBB- with stable outlook.

The proceeds will be used from the proposed debt issuance to finance its purchase of 60% of Landmark Partners, an alternative asset manager, and for other general corporate purposes, including the settlement of an interest rate hedge and the purchase of certain seed capital investments, S&P said.

As of March 31, 2016, the company’s adjusted debt totaled $140 million, including $85 million outstanding under the revolving credit facility and $55 million operating lease adjustment, the agency said.

Pro forma for this debt issuance, the company's adjusted debt-to-EBITDA was about 1.8x as of March 31, S&P said.

The ratings reflect the company's broadly diversified product mix and customer base, solid investment performance and good distribution capabilities, the agency said.

OM Asset’s ownership by financial sponsor Old Mutual plc weighs on the assessment of the company's financial risk profile, S&P added.

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