S&P gives Serena, loan B, notes CCC+

Standard & Poor's said it assigned its B corporate credit rating to Serena Software, Inc.

At the same time, S&P said it assigned its B rating and its 2 recovery rating to the company's proposed $450 million senior secured facility, which consists of a $75 million, six-year revolving credit facility, undrawn at close and a seven-year, $375 million term loan.

The agency added it assigned its CCC+ rating to $225 million in senior subordinated notes.

The outlook is stable.

S&P said the rating on Serena reflects the company's narrow business profile, competitive market place and high leverage, around 6.9 times adjusted debt to EBITDA.

These factors are partially offset by a leading position in a growing niche software market, strong EBITDA margins and a significant base of recurring business, S&P added.

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