S&P rates Sirius Computer loans B, notes CCC+

S&P said it affirmed its B issuer credit rating on SCS Holdings I Inc. (Sirius Computer Solutions Inc.). The outlook is stable.

S&P also assigned a B issue-level rating and 3 recovery rating to Sirius' proposed first-lien senior secured credit facilities, consisting of $750 million term loan and $190 million revolver, and a CCC+ issue-level rating and 6 recovery rating to the proposed $300 million senior unsecured notes.

Clayton, Dubilier, & Rice, a private equity sponsor, is acquiring SCS Holdings I (the holding company of Sirius Computer Solutions), for approximately $1.5 billion, partially funding the transaction with $1.05 billion of debt.

“The affirmation primarily reflects our expectation that adjusted leverage, pro forma for the proposed LBO debt financing, will remain within our leverage threshold at the B rating. Following the transaction, we estimate that pro forma S&P Global Ratings-adjusted debt to EBITDA will increase to the high-6x area, up from the high-5x area for the 12 months ended Dec. 31, 2018,” S&P said in a news release.

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