S&P rates Electronics for Imaging loans B-, CCC+

S&P said it assigned a B- issuer credit rating to Electronics for Imaging Inc. (EFI), along with a B- rating and 3 recovery rating to its first-lien term loan and revolving credit facility.

The agency also said it assigned a CCC+ rating and 5 recovery rating to the second-lien term loan.

EFI agreed to be taken private by financial sponsor Siris Capital Group for roughly $1.6 billion cash, S&P said.

The ratings reflect its high starting leverage at higher than 10x, integration risks from its significant cost-saving plan and a view that revenue would likely decline during a downturn given its reliance on capital spending, the agency said.

But, S&P said it believes EFI's growth in the corrugated packaging and textile industrial inkjet market will drive EBITDA growth, along with the new management team's focus on operating efficiency.

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