S&P rates Kofax loan B

S&P said it assigned a B issuer credit rating to Kofax Parent Ltd. and affirmed the B issue-level and 3 recovery ratings on the company's first-lien credit facility consisting of the term loan and the revolver.

The agency also said it withdrew the rating on Kofax Inc.

Kofax Parent has entered into a definitive agreement to acquire Nuance Communications Inc.'s document imaging business for $400 million, S&P explained.

Kofax will finance the acquisition with a $410 million incremental first-lien term loan and a $20 million incremental revolving credit facility, which will be undrawn at close, the agency said.

The stable outlook reflects Kofax's better operating performance and an expectation that the company will successfully integrate Nuance's business while achieving modest organic revenue and EBITDA growth with good cash flow generation, S&P said.

Kofax's adjusted leverage is expected to be near 6x when the acquisition closes, which is about half a turn higher than previous expectations, the agency said.

It is expected to decline to the 5x range by 2019, S&P added.

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