S&P rates Vertafone loans B+

Standard & Poor's said it assigned a B corporate credit rating to Vertafore Inc., along with a B+ rating to its $625 million first-lien credit facilities, consisting of a $550 million term loan due 2016 and a $75 million revolving credit facility due 2015. A recovery rating of 2 was assigned, indicating expectations of 70% to 90% recovery for lenders in the event of a default.

The outlook is stable.

Proceeds will be used to finance the roughly $1.4 billion purchase of Vertafore from its current private equity sponsor, the agency said.

The rating reflects the company's narrow addressable market, limited revenue base and highly leveraged financial profile, S&P said.

Its solid niche market position, healthy operating margins and high recurring revenue base partially offset those factors, the agency said.

© 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.