Moody’s gives B3 to Everise loans

Moody's said it assigned B3 ratings to BCP V Everise Acquisition LLC's planned backed senior secured first-lien credit facilities consisting of a $90 million revolver maturing 2028 and a $425 million term loan B due 2030.

The agency also affirmed Everise’s B3 ratings and changed the outlook to stable from positive.

Term loan proceeds and new cash equity from Warburg Pincus International LLC and rollover equity from management and the company's current sponsor, Brookfield Asset Management Inc., will be used to refinance debt, pay fees and expenses related to the transaction and add cash to the balance sheet.

“The outlook change to stable from positive reflects the impact to Everise's credit profile from term loan debt more than doubling after transaction close. Moody's adjusted debt-to-EBITDA leverage as of Sept. 30, 2023 was 2.6x, and pro forma for the transaction, Moody's adjusted debt-to-EBITDA leverage increases to above 5x. Rising benchmark rates and an increasing debt load support Moody's expectation that free cash flow will be lower than previous expectations in May 2023 when Moody's previously changed Everise's outlook to positive from stable,” the agency said in a press release.

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