S&P cuts Solera; rates loan B, notes B-

Standard & Poor's lowered its corporate credit rating on Solera Holdings Inc. to B from BB- and removed the rating from CreditWatch, where it was placed with negative implications on Aug. 24, 2015, due to the company's announcement of a strategic review. The outlook is negative.

At the same time, S&P assigned its B issue-level rating and 3 recovery rating to the company's secured debt, consisting of an undrawn $300 million revolver and $1.9 billion secured term loan B. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; upper half of range) of principal in the event of a payment default.

S&P also assigned its B- issue-level rating and 5 recovery rating to the company's unsecured debt, consisting of $2.03 billion of unsecured notes. The 5 recovery rating indicates our expectation for a modest recovery (10%-30%; lower half of the range) of principal in the event of a payment default.

The BB- issue level ratings on the company's notes will remain on CreditWatch with negative implications until the close of the proposed financing, at which point we expect to withdraw them.

“Our downgrade of Solera reflects the significant increase in the company's adjusted leverage following its sale to Vista Equity Partners,” said S&P credit analyst Peter Bourdon in a news release.

© 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.