S&P applies B to Aptos loan

S&P said it affirmed its B corporate credit rating on Aptos, Inc.

The outlook is stable.

At the same time, the agency assigned its B issue-level rating and 3 recovery rating to the company's proposed $225 million first-lien term loan. The 3 recovery rating indicates an expectation for meaningful recovery (50-70%; upper end of the range) in the event of a payment default.

"The B corporate credit rating reflects our view of the combined entity's adjusted pro forma leverage at transaction close in the mid- to high-5x area, which we expect will persist through the end of 2016, below-average EBITDA margins relative to rated software peers because of its limited operating scale, and competition against larger enterprise resource planning software providers such as Oracle (Micros)," S&P credit analyst Dee Banson said in a news release.

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