Fitch assigns Peraton B, loans BB-, CCC+

Fitch Ratings said it assigned Peraton Holding Corp., Peraton Corp. and Peraton Inc. each B issuer ratings. The agency also gave BB-/RR2 ratings to the proposed first-lien revolver and debt and second-lien term loan of CCC+/RR6.

The ratings and analysis reflect the pro forma capital structure incorporating the two recently announced, leveraging acquisitions of Northrop Grumman Corp.'s federal IT and mission support services business for $3.4 billion and Perspecta Inc. for $7.1 billion, which were announced in December 2020 and January 2021, respectively.

“Fitch expects the new capital structure, pro forma for both transactions will be comprised of a $500 million first-lien secured revolving credit facility, $5.9 billion first-lien secured debt, $2.2 billion second-lien secured term loan, and $66 million of rolled over notes from Perspecta, which continue to benefit from an irrevocable guarantee for any P&I from HP Inc. (HPI). In addition to funding the transaction, the new debt will also be used to refinance current debt at the company and fund financing costs and legal fees related to the deal,” the agency said in a press release.

The outlook is stable.

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