Moody’s: Starfish Holdco facilities B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Starfish Holdco, LLC following the announcement of a leveraged buyout.

At the same time, the agency assigned a B2 rating to the company's proposed $665 million first-lien senior secured credit facility ($75 million revolver and $590 million term loan) and a Caa2 rating to the proposed $200 million second-lien term loan.

The outlook is stable.

Starfish Holdco is the ultimate parent company of the two co-borrowers under the new credit facilities, Sahara Parent, Inc. (Syncsort, initially Starfish-S Merger Sub, Inc.) and Vero Parent, Inc. (Vision Solutions, initially Starfish-V Merger Sub, Inc.), and is the guarantor (along with the company's domestic subsidiaries) of the company's credit facilities.

The co-borrowers will be restricted subsidiaries of Starfish Holdco (parent) and will be jointly and severally liable for the senior secured debt.

Proceeds from the proposed debt financing along with new and rollover equity will be used to fund a $1.26 billion buyout of Syncsort and Vision Solutions by financial sponsor Centerbridge Partners LP from Clearlake Capital Group LP. At closing, Centerbridge will own about 80% of the pro forma equity, while Clearlake and management will own the remaining 20%.

The ratings of predecessor company Syncsort, Inc., including the B3 corporate family rating and instrument ratings, will be withdrawn upon closing of the transaction and repayment of existing debt.

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