Moody's: Corel unchanged despite add-on

Moody's Investors Service said Corel Corp.'s plans to launch an add-on to its first-lien term loan is a credit negative as it moderately increases leverage and indicates Corel's willingness to add fixed term debt to fund its roll-up strategy.

The proceeds of the add-on are expected to be used to finance an acquisition, Moody's indicated.

The financing also shortly follows a debt-funded dividend recapitalization transaction in June 2018, the agency added.

But at this time, Moody's said the transaction will not result in changes to the company's B2 corporate family rating or stable outlook because Corel's leverage position and its aggressive growth strategy remain within expectations for the rating.

The B2 rating on the company's senior secured first-lien credit facilities, including its $10 million revolving credit facility due 2023 and $365 million, upsized from $275 million, term loan due 2024 also are not affected.

© 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.