Fitch rates Micro Focus loan BB

Fitch Ratings said it assigned a rating of BB/RR1 to Micro Focus International plc's proposed senior secured €400 million term loan B and $400 million term loan B to be issued by the company's subsidiary borrower, MA FinanceCo LLC.

The BB- ratings for Micro Focus, MA FinanceCo and Seattle Spinco, Inc. are not affected by the transaction, Fitch said.

“Fitch views the transaction as slightly deleveraging with sources of funds used to partially refinance the existing $1.415 billion term loan in addition to a $150 million prepayment using existing cash balances. Fitch expects the new issuance will be pari passu with the company's existing first-lien senior secured debt and will also be in line with other terms and conditions on the existing debt as well,” the agency said in a press release.

The outlook remains stable.

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