Moody’s eyes Alight for upgrade

Moody’s Investors Service said it placed Tempo Acquisition, LLC’s (Alight Solutions) B2 corporate family rating, B2-PD probability of default rating and B1 instrument ratings on Alight’s first-lien senior secured debt, consisting of a $250 million revolver, a $2.62 billion term loan and $300 million of senior secured first-lien notes, under review for upgrade.

The review stems from Monday’s announcement Alight entered into a combination agreement with Foley Trasimene Acquisition Corp. Foley is a special purpose acquisition company, or SPAC, through which Alight will become a publicly traded company with reduced leverage.

Foley’s cash will be used to take Alight public, pay $1 billion to Alight shareholders and repay Alight’s $1.86 billion of its $4.14 billion of debt.

Since Foley plans to pay down Alight’s $1.23 billion of unsecured debt in its entirety, Moody’s said it sees withdrawing the notes’ Caa1 rating upon closing the transaction.

“The balance of the planned debt paydown will be allocated towards a $634 million portion of Alight’s term loan debt, while all of the $300 million pari passu secured senior notes will remain in place,” the agency said in a press release.

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