S&P moves Mavenir view to negative

S&P said it changed its outlook for Mavenir Private Holdings II Ltd. to negative from stable and affirmed its ratings, including the B- ratings on the issuer and its secured debt. The 3 recovery rating on the secured debt is unchanged, indicating meaningful (50%-70%; rounded estimate: 50%) recovery in default.

“We expect that Mavenir's leverage will be elevated in 2022 due to weak operating and financial performance. We expect Mavenir's adjusted leverage will increase to low-13x in 2022 compared with 12x in our previous forecast due to lower-than-expected EBITDA growth. Revenue from one of Mavenir's key customers is expected to be significantly under budget given delays in migrating from one product to another,” the agency said in a press release.

S&P said it also sees Mavenir posting a free operating cash flow deficit of $120 million to $130 million in 2022 and $40 million to $60 million in 2023.

“The 2022 outflows are mitigated by $120 million of proceeds from the $95 million term loan and $10 million equity infusion. We anticipate the company will need another $50 million-$70 million of additional capital fund FOCF deficits in 2023,” S&P said.

© 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.