Moody's assigns EverCommerce B1

Moody's Investors Service said it assigned first-time ratings to EverCommerce Solutions Inc. with a B1 corporate family rating and a B1-PD probability of default rating.

Concurrently, Moody's assigned a B1 rating to the company's planned senior secured first-lien credit facility, comprised of a $300 million term loan and an undrawn $190 million revolver.

EverCommerce will use the proceeds with funds received from the IPO of its parent company EverCommerce Inc. to repay debt. “The debt offering and rating action assumes the successful completion of EverCommerce Inc.'s IPO (including the exercise of the overallotment option),” Moody’s said in a press release.

“EverCommerce's B1 CFR is constrained by the company's moderate pro forma trailing debt leverage exceeding 3.5x (Moody's adjusted for operating leases), limited scale, and the potential for material customer losses due to macroeconomic cyclicality or intensifying competitive pressures. The IPO increases financial flexibility and Moody's expects the company to maintain leverage under 4x,” the agency said.

The outlook is stable.

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