Moody’s ups Qlik, rates loans B2

Moody's Investors Service said it upgraded Project Alpha Intermediate Holding, Inc.'s (Qlik) corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD.

Concurrently, Moody's assigned a B2 rating to Qlik's proposed $2.4 billion backed senior secured first-lien term loan B due 2030 and $200 million backed senior secured first-lien revolving credit facility due 2028.

The outlook is stable.

Net proceeds of the term loan will be used to repay Qlik's outstanding secured debt and Talend's outstanding privately placed debt.

Upon repayment, Moody's said it will withdraw ratings of Project Alpha Intermediate Holding's existing backed senior secured term loan due April 2024 and backed senior secured revolver due October 2023.

“The upgrade of CFR to B2 reflects Moody's expectation that Qlik will continue to maintain good operating performance and ARR growth,” the agency said in a news release.

“Leverage, which has decreased to around 5.2x (Qlik standalone) as of LTM June 2023, will increase to approximately 6.5x as of LTM September 2023 pro forma for the transaction (excluding any pro-forma cost savings).

“However, Moody's expects that leverage will decrease to the mid 5x range (and below 5x when adjusting for change in deferred revenue) by the end of 2024, driven by revenue growth and realization of cost actions.”

© 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.