Allied Universal Holdco LLC Eliminates 2026 Maturities And Frees Up Liquidity With Proposed Refinancing
S&P Global - Ratings Direct
Bulletin:
Allied Universal Holdco LLC Eliminates 2026 Maturities And Frees Up Liquidity With Proposed Refinancing
August 1, 2024
This report does not constitute a rating action.
NEW YORK (S&P Global Ratings) Aug. 1, 2024--S&P Global Ratings today said Allied Universal Holdco LLC's (B/Stable/--) proposed leverage-neutral transaction is modestly credit positive. The company is issuing add-on senior secured notes due 2031, using the proceeds to redeem its remaining $206 million outstanding 2026 notes and pay down borrowings under its asset-based lending facility.
The proposed transaction is the final deal in a series over the course of this year aimed at reducing and now eliminating its 2026 notes ($1.94 billion was outstanding at the end of 2023). In addition to improving its maturity profile, this will strengthen Allied’s already solid liquidity position. We expect management to turn its attention to addressing its over $10 billion of debt maturing in 2027 and 2028.
All our ratings on Allied are unchanged. We continue to anticipate a trend of gradually declining leverage and improving free cash flow over time, enabled by its operating initiatives and an easing labor environment.
For additional information, see our full analysis published July 11, 2024, on RatingsDirect.
Primary contact
Pasha Azadmard, CFA
New York 212-438-1641
Secondary contact
Andy G Sookram
New York
1-212-438-5024
Allied Universal Holdco LLC Eliminates 2026 Maturities And Frees Up Liquidity With Proposed Refinancing
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