Moody's: Applied Systems CFR B3, loans B1, Caa2

Moody's Investors Service said it assigned the following ratings to MiddleCo, Applied Systems, Inc.: B3 corporate family rating, B3-PD probability of default rating, B1 ratings to the $675 million first-lien term loan and $50 million revolving credit facility and Caa2 rating to the $375 million second-lien term loan.

The outlook is stable.

Moody's said the B3 corporate family rating reflects Applied Systems' exceptionally high pro-forma leverage of nearly 9 times (Moody's adjusted debt to EBITDA) resulting from the debt incurred to fund the company's sale, for about 14 times EBITDA, to private equity investors Hellman Friedman and JMI Equity from another private equity firm.

The rating also takes into account Applied System's relatively small scale and concentrated business profile as a niche provider of software services, primarily enterprise automation solutions for retail agents, to the property and casualty insurance distribution industry, the agency said.

© 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.