Moody's rates Sybil loans B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Sybil Investments BV and B1 ratings to the $420 million term loan B and $40 million revolving credit facility issued with Sybil Finance BV as co-borrower. The outlook is stable.

Together with a cash equity investment from CVC, the term loan proceeds will be used to fund a share purchase from existing shareholders and to add $15 million of cash to the balance sheet.

The agency said the B1 corporate family rating incorporates the company's small scale, the intense industry competition and inherent technology risks in security software markets, low customer switching costs and small share of the endpoint security market.

More positively, the rating reflects the company's strong position with regard to its large user base, high profitability, strong free cash flow generation, which the agency expects to lead to rapid deleveraging, and the positive underlying growth fundamentals of the security software market, Moody's said.

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