S&P upgrades TeamViewer

S&P said it raised the long-term corporate credit rating on TigerLuxOne Sarl (TeamViewer) to B+ from B.

The company is a remote access software and online meeting software provider wholly owned by private equity firm Permira, S&P said.

The outlook is stable.

The agency also said it assigned a B+ corporate credit rating to TeamViewer's fully owned financing subsidiary, Regit Eins GmbH.

S&P also said it raised the rating on the company's €390 million-equivalent first-lien senior secured term loan to B+ from B.

The term loan includes a $320 million tranche and a revolving credit facility of the equivalent of about €31 million. The recovery rating on this debt is 3, indicating 50% to 70% expected default recovery.

The agency also said it raised the rating on the €115 million-equivalent second-lien senior secured term loan to B- from CCC+. The recovery rating remains at 6, indicating 0 to 10% expected default recovery.

The upgrades reflect TeamViewer's stronger-than-expected billings growth and free operating cash flow generation in 2015, S&P said.

The agency also said it considers a forecast that the company's credit metrics and free operating cash flow will continue to improve in 2016 and 2017, primarily thanks to continued solid demand prospects for remote support software.

The upgrades also take into account the company's very high profitability and cash conversion with reported cash-based EBITDA margins of about 60% in 2015, S&P added.

TeamViewer also has a small size and very narrow product focus, 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.