symplr Software, Grocery Outlet trend lower with general market heaviness

By Sara Rosenberg

New York, Sept. 14 – symplr Software Inc. had the outlook on its rating revised downwards and Grocery Outlet Inc. (GOBP Holdings Inc.) saw its ratings upgraded, but both of these names traded lower on Wednesday as the market in general retreated.

symplr Software’s covenant-lite first-lien term loan due December 2027 dipped to 96¾ bid, 97¾ offered from 97 bid, 98 offered as the outlook on the company’s ratings was revised to negative from stable by Standard & Poor’s, according to a market source.

However, the secondary market in general was down, so symplr likely moved with the general market as opposed to on the ratings news, the source added.

S&P said that the negative outlook on symplr reflects its view that if EBITDA remains suppressed in the second half of 2022 with limited prospects for improvement in 2023, financial metrics may no longer be commensurate with a B- rating.

The move also reflects S&P’s view that ongoing investments to support organic revenue growth, combined with the higher interest rate environment, could lead the company to sustain free operating cash flow deficits.

One market source had the general market lower by about a quarter to a half a point on the day. Another source said it was weaker by about a quarter of a point on Wednesday, which was slightly better than the half a point it lost in the previous session.

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