Moody’s affirms Bomgar

Moody's Investors Service said it affirmed Brave Parent Holdings, Inc.'s (Bomgar) B3 corporate family rating and B3-PD probability of default rating following the company's announcement that it will borrow an incremental $315 million under its senior secured first-lien term loan, as well as an incremental $124 million under its (unrated) senior secured second-lien term loan.

The agency also affirmed the B2 ratings on the company's senior secured first-lien term loan and senior secured first-lien revolving credit facility. The outlook is stable.

Bomgar also upsized its senior secured first-lien revolving credit facility to $40 million from $25 million.

Proceeds, along with $336 million of cash equity from funds affiliated with Francisco Partners, will be used to finance the acquisition of BTS Holding Corp. (BeyondTrust), as well as fund transaction fees and expenses.

The corporate family rating broadly reflects Bomgar's highly aggressive financial policies, very high leverage, small scale and acquisition appetite, Moody’s said.

These risks are offset to some degree by the expectation of strong free cash flow generation and organic revenue and EBITDA growth in the low- to mid-teens percentage range over the next 12 to 18 months, the agency said.

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