S&P gives Vertafore facilities B-, CCC

S&P said it assigned its B- corporate credit rating to Project Viking Holdings Inc. The outlook is stable.

At the same time, the agency assigned its B- issue-level rating to Vertafore Inc.'s $1.7 billion first-lien credit facility, consisting of a $100 million revolving credit facility due 2023 and a $1.6 billion first-lien term loan due 2025.

The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate 60%) recovery in the event of a default.

In addition, S&P assigned a CCC issue-level rating to the company's $665 million second-lien term loan due 2026. The 6 recovery rating indicates an expectation of negligible (0%-10%; rounded estimate 0%) recovery.

Vertafore intends to refinance its existing capital structure and fund a $540 million distribution to shareholders.

The agency said its view of Vertafore's business risk profile reflects its narrow market focus as a niche provider of software in the property and casualty insurance market.

However, the company's leading market position, high recurring revenue and good track record of operating performance partly offset those factors, S&P said.

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