S&P: GGC loan B+, notes B-

Standard & Poor's said that it assigned a B corporate credit rating to GGC Software Holdings LLC.

The outlook is stable.

S&P assigned a B+ issue-level rating and 2 recovery rating to the company's $1.04 billion first-lien credit facilities and a B- rating and 5 recovery rating to its $560 million of senior notes.

GGC Software intends to use the newly issued debt, along with about $560 million of new sponsor equity from Golden Gate Capital, to purchase the company and to refinance existing debt.

The ratings reflect the company's highly leveraged capital structure, with pro forma debt to EBITDA in the 7x area and declining to the mid-6x area as the company realizes cost-saving synergies over the coming year, the agency said.

The recurring revenue base, positive cash flows through the recent downturn and recognized product strength somewhat offset this factor, the agency added.

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