Moody's assigns Aptos, loan B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to 1236904 BC Ltd. (Aptos) following the announcement of its leveraged buyout. Moody's also assigned a B3 rating to the company's proposed $340 million senior secured first-lien credit facility ($40 million revolver and $300 million term loan). The revolver is expected to be undrawn at closing. The outlook is stable.

Proceeds from the new first-lien term loan, along with a contribution of new common equity from Goldman Sachs merchant banking division and rollover equity from management, will fund the leveraged buyout of Aptos from Apax Partners, refinance debt and pay transaction fees and expenses.

The ratings of predecessor company Aptos, Inc., including the B3 CFR and instrument ratings, will be withdrawn upon closing of the transaction and repayment of debt.

Leverage is expected to remain high and cash flow limited over the next 12-18 months as Aptos continues to accelerate the transitioning of its products and services into the cloud through software as a service offerings.

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