Fitch assigns Kofax B, loans BB-, CCC+

Fitch Ratings said it assigned first-time long-term issuer defaults ratings of B to Snow Topco, Ltd. and its subsidiary, Snow Borrower Inc., (together Kofax). The agency also gave Snow Borrower a BB-/RR2 first-lien term loan ratings, and CCC+/RR6 second-lien term loan ratings.

“Kofax's B rating reflects its high leverage profile despite its retention rate and recurring revenue characteristics. Pro forma for the planned issuance of debt, Fitch calculates leverage was 7.4x at the end of 2021. Leverage is forecast to modestly improve with mandatory amortization payments and EBITDA growth. Fitch forecasts leverage at approximately 7x at the end of 2023.

“The large debt burden will also pressure Kofax's interest coverage metrics, which Fitch forecasts to be at or below 2x. Fitch assumes Kofax will prioritize spending for growth over debt reduction,” the agency said in a press release.

The outlook is stable.

© 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.