Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers I > Headlines for Instructure Holdings, Inc. > News item |
Fitch prunes Instructure
Fitch Ratings said it downgraded Instructure Holdings, Inc.'s long-term issuer default rating to BB- from BB and its first-lien debt to BB+ from BBB-. The agency rated the planned $685 million fungible add-on first-lien term loan BB+. The recovery rating remains unchanged at RR1.
“The downgrade reflects the debt burden associated with the pending acquisition of Parchment for $835 million,” Fitch said in a statement. The new loan will push Instructure’s Fitch-calculated 2023 pro forma leverage to about 5.5x.
Instructure will use the new loan for the Parchment transaction, working capital, general corporate purposes and for costs associated with the acquisition.
“Fitch previously stated that an unfavorable rating action could occur if, on a sustained basis, leverage exceeded 3.5x, if CFO less capex to debt was below 20%, and, or if acquisitions were largely funded with debt and pressured credit metrics,” the agency said.
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.