Jul. 31 at 3:51 PM
$ALIT Another thing to consider is that Alight's interest rate swaps expire on 12/31/2026. This means they could either re-hedge with new swaps, or remain unhedged. Their
$2 Billion debt must be refinanced by the August 2028 expiration. So Alight will need to begin that process in 2027. If they re-hedge with new interest rate swaps, the rate will likely be higher than the original swaps. If they don't re-hedge, their interest payments will be based on a variable rate of SOFR plus the spread. The current spread is SOFR + 1.75%. If the spread goes up, interest payments go up. I believe Alight currently pays
$96 Million annually for its interest payments. This amount will likely increase next year whether they hedge with new interest rate swaps, or pay the SOFR + spread. Because I'm concerned about their ER on 8/4/2026, I sold all of my ALIT shares on 7/30 at
$19.67 to lock in profits. (I may buy back on the dips.) They may have a stellar ER, but I didn't want to take the chance.
