Moody's Ratings affirms Global Infrastructure Solutions Inc.'s Ba3 CFR; outlook stable

Global Infrastructure Solutions Inc.: Update following ratings affirmation - Credit Opinion – 2024/05/13 – US$ 250.00 – ...GISI's credit profile (Ba3 corporate family rating) is supported by a strong market position, diversified end-market exposure, strong order backlog ($24.5 billion at March 31, 2024) which provides revenue visibility, conservative balance sheet management, an experienced management team, and a track record of successfully integrating acquisitions. At the core of the company's strategy is the goal to create a scalable and diverse platform of E&C firms that facilitates ownership transition for high quality firms, allowing them to take advantage of GISI's experience, access to capital, and industry expertise. The rating is constrained by relatively modest margins, especially in the construction services segment (85% of 2023 revenue), fixed price contract exposure, reliance on M&A for growth, and the need for regular shareholder returns ¡ to fund periodic share redemptions as well as to pay dividends ¡ as a way to attract and retain its employees....

Global Infrastructure Solutions Inc.: Update to credit considerations - Credit Opinion – 2023/06/15 – US$ 250.00 – ...Global Infrastructure Solutions Inc.'s (GISI) credit profile (Ba3 corporate family rating) is supported by a strong market position, diversified end-market exposure, strong order backlog which provides revenue visibility, conservative balance sheet management, and an experienced management team. The credit profile is constrained by a priority focus on M&A to drive growth, modest margins in the construction services segment which continues to represent a large proportion of total revenues (~91% in 2022), a focus on returning cash to shareholders through dividends and share repurchases, and exposure to fixed-price contracts. At the core of the company's strategy is the goal to create a scalable and diverse platform of E&C firms that facilitates ownership transition for high quality firms, allowing them to take advantage of GISI's experience, access to capital, and industry expertise....

Global Infrastructure Solutions Inc.: Update to credit analysis - Credit Opinion – 2022/06/27 – US$ 250.00 – ...On April 04, 2022 Moody's assigned a B1 rating to the new senior unsecured $300 million 10 year notes of Global Infrastructure Solutions, Inc. (GISI). Proceeds from the notes are expected to be used to for general corporate purposes and to finance inorganic and organic growth. The outlook is unchanged at stable. GISI recently closed on the acquisition of 80% of the shares of Palladium Holdings Pty Ltd, a leading program management services firm based out of Brisbane, Australia. The deal was financed with $224 million from balance sheet cash and $75 million in GISI common stock. Two other smaller acquisitions closed in the first half as well. This bond issuance above helps replenish GISI's cash balances and support further organic and inorganic growth....

Global Infrastructure Solutions Inc.: Covenant Quality Post-Sale Snapshot: $300m 7.500% Senior Notes due 2032 - Covenant Quality Assessment – 2022/04/19 – US$ 750.00 – ...1. Cash leakage/risky investments: (i) any RP (including investments) is permitted if a 2.75x net leverage ratio is met (initially satisfied) and no default; (ii) RP carve-outs equate to 48% of total assets; (iii) there are no objective checks on large affiliate transactions 2. Leveraging: (i) very aggressive EBITDA add-backs including uncapped pro forma cost saving and synergies; (ii) cushion under $1 debt test > 5.0x adj. EBITDA; (iii) debt carve- outs > 36% of total assets even when considering the revolver as fully drawn 3. Liens subordination: (i) potential incremental subordinating secured debt > 2.85x adj. EBITDA 4. Strucural subordination. (i) significant initial structural subordination, as non-guarantor subsidiaries account for $924m of total liabilities, supported by 27% of total assets 5. CoC: (i) put is triggered by only one of the five standard events (unusual exclusion of the sale of all or substantially all assets event); (ii) put does not protect against a public merger...

Moody's assigns B1 rating to Global Infrastructure Solutions Inc. (GISI's) new senior unsecured notes, outlook stable - Rating Action – 2022/04/04 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Global Infrastructure Solutions Inc.: Moody's assigns Ba3 rating to Global Infrastructure Solutions Inc. (GISI) - Credit Opinion – 2021/06/07 – US$ 250.00 – ...On May 17, 2021, Moody's assigned Ba3 Corporate financial rating (CFR) to Global Infrastructure Solutions Inc. (GISI) and B1 to the company's new $400 million 8 year senior unsecured notes. Proceeds of the notes are expected to be used for general corporate purposes including liquidity to support organic and inorganic growth. The outlook on the ratings is stable....