S&P revises Kofax to negative

S&P said it affirmed the B corporate credit rating on Kofax Inc. and revised the outlook to negative from stable.

At the same time, the agency affirmed the B issue-level ratings on the company's proposed $620 million first-lien credit facility, which includes a $60 million revolver (undrawn at close). The 3 recovery rating is unchanged and indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default.

"The negative outlook reflects adjusted leverage in the high-6x area at transaction close, which is above our previously published downgrade threshold of mid-6x, due to the incremental $55 million the company intends to add to the proposed first-lien term loan," S&P credit analyst Dee Banson said in a news release.

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