Moody's rates Everise, loans B3

Moody's Investors Service said it assigned Everise Holdings Pte. Ltd. a B3 corporate family rating and B3-PD probability of default rating. The agency also gave B3 ratings to BCP V Everise Acquisition LLC's planned senior secured credit facilities consisting of a $50 million revolving credit facility due 2027 and a $210 million term loan due 2027.

“Everise's B3 CFR is constrained by moderately high debt-to-EBITDA leverage of 4.7x estimated for FYE2021 pro forma for the transaction, low barriers to entry for larger, global players to replicate Everise's business strategy, and small scale and high customer concentration, with top three customers accounting for about 45% of revenues in 2021,” Moody’s said in a press release.

However, “The company benefits from strong organic revenue growth in fast-growing verticals, including healthcare and new economy, further supported by the positive growth aspects of the customer experience business process outsourcing industry, good quality, successful and growing clients that value Everise's ability to represent their brand culture to customers, strong net promoter scores that support high customer retention and growing wallet share of existing clients and a good liquidity profile,” the agency said.

Everise will use the term loan proceeds with balance sheet cash to refinance debt, fund a dividend distribution to shareholders and pay transaction-related fees and expenses. The proposed $50 million revolver is expected to be undrawn and fully available at closing. “The debt-funded distribution and Everise's private equity ownership point to an aggressive financial strategy,” Moody’s said.

The outlook is stable.

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