S&P affirms DigiCert Parent

S&P said it affirmed its B corporate credit rating on DigiCert Parent Inc. following the upsizing of the company's proposed term loans. The proceeds will be used to repay DigiCert's existing debt (about $325 million outstanding), pay $950 million in cash proceeds to Symantec and take out a portion of the series A stock (about $380 million).

At the same time, S&P said it affirmed its B issue-level rating on the company's proposed $90 million revolving credit facility and proposed $1.35 billion first-lien term loan due 2024. The 2 recovery rating on the revolving facility and first-lien facilities indicates an expectation for substantial (70%-90%; rounded estimate of 70%) recovery in the event of a payment default.

S&P also affirmed its CCC+ issue-level rating on the company's proposed $500 million second-lien term loan due 2025. The 6 recovery rating on the second-lien debt indicates an expectation for negligible (0%-10%; rounded estimate of 5%) recovery in the event of a payment default.

“Due to the upsizing of the term loans, pro forma adjusted leverage will be in the mid-7x area following the close of the transaction. We expect adjusted leverage to be under 7x by fiscal year-end 2018 as a result of synergies following the acquisition of Symantec's web security and PKI business,” S&P said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.