S&P rates Claudius, loans BB-

S&P said it assigned BB- ratings to Claudius Finance Parent Sarl, Cegid's holding company, and to the group's €75 million revolving credit facility and €880 million first-lien term loan.

Cegid plans to use the term loan to acquire Talentsoft and refinance its €410 million of debt.

“We expect the debt-funded acquisition will increase our adjusted leverage for Cegid to about 5x in 2021 (about 4.6x excluding acquisition and business transformation-related costs), before deleveraging toward 4x in 2022. Although this ratio is significantly higher than 3x in 2020 before the transaction, it is still relatively low compared with that of other financial sponsor-owned software peers like TeamSystem and Exact, which are well above 6x,” S&P said in a press release.

The agency said it forecasts Cegid generating more than €110 million of free operating cash flow (FOCF) in 2021, with FOCF to debt higher than 10%, supporting the company's financial risk profile.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.