S&P gives B to Osaic loan

S&P said it gave a B issue rating to Osaic Holdings Inc.'s planned $1.65 billion senior secured five-year term loan. Osaic was formerly the Advisor Group.

The agency’s ratings on Osaic’s outstanding secured debt at B and CCC+ on its unsecured debt are unchanged.

The loan will be used to repay fully the $1.448 billion term bank loan maturing May 2026 with the rest to be spent on general corporate purposes, including bolt-on acquisitions.

“The net new additional debt of about $200 million, resulting from this transaction, will have no rating impact because we don't expect it to materially erode the company's leverage or debt service coverage metrics. Even with this additional debt, we expect adjusted debt to EBITDA to remain below 5.5x in 2023, in line with our B rating assessment and current stable outlook,” the agency said in a statement.

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