S&P rates Kofax CCR, facility B

S&P said it assigned a B corporate credit rating to Kofax Inc.

The outlook is stable.

At the same time, the agency assigned B issue-level and 3 recovery ratings to the company's proposed $565 million first-lien credit facility, which includes a $60 million revolver (undrawn at close). The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery for lenders in the events of a payment default.

"The B corporate credit rating reflects the company's relatively small scale and niche focus within a fragmented and highly competitive ECM-based productivity software marketplace, less predictable product refresh cycle relative to that of other software companies, and its relatively low recurring revenue base of roughly 55% of revenues," S&P credit analyst Dee Banson said in a news release.

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