S&P turns Anthology view to negative

S&P said it revised its outlook for Astra Acquisition Corp. (Anthology) to negative from stable and affirmed its B- rating.

“During 2022, Anthology paid down $525 million of first-lien debt with the proceeds from its divestments of Blackboard Collaborate and Blackboard Community Engagement. Despite the material reduction in its debt, the company's S&P Global Ratings-adjusted leverage remains above 10x, largely due to its accelerated investments in Blackboard's products to address the tech debt in the acquired Learning Management System (LMS) portfolio and improve its competitiveness,” S&P said in a press release.

The agency said it forecasts the firm will report negative free cash flow in the $75 million-$80 million range in fiscal year 2023, though about $40 million will be for a one-time tax payment related to the asset divestments.

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