S&P rates Informatica loans B-, CCC+, view to stable

S&P said it assigned Informatica’s proposed first-lien facility a B- with a recovery rating of 3 and a CCC+ issue-level rating and 5 recovery rating to the proposed second-lien term loan.

The transaction reduces refinancing risk and may lead to an overall reduction in interest costs; however, it will also increase pro forma leverage by about 0.25x, which in S&P’s view, diminishes prospects for a leverage reduction below 8x over the next 12 months.

“We are not taking action the company’s existing debt ratings, as we expect repayment at the close of this transaction,” the agency said in a press release.

S&P affirmed Informatica’s B- rating and revised the outlook to stable from positive. “The stable outlook on Informatica reflects our expectation that the company will maintain leverage in the low- to mid-8x area over the next year on good demand for its software offerings, which we think will translate to continued growth in net new bookings, low- to mid-single-digit percent organic revenue growth, and relatively stable EBITDA margins,” said S&P.

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