S&P gives Cloudera, loan BB-

S&P said it assigned BB- ratings to Cloudera Inc. and its planned $500 million first-lien term loan due 2027. The loan’s recovery rating is 3.

“The BB- rating reflects Cloudera's initial adjusted leverage in the low-4x area at close and its relatively small scale. It has a niche focus on data management and analytics solutions across a hybrid, multi-cloud environment,” S&P said in a press release.

Proceeds will be used for general corporate purposes, including the funding of share repurchases.

The agency assigned a stable outlook. “The stable outlook reflects our expectation Cloudera will generate organic revenue growth in the high-single-digit percentages, with modest EBITDA margin expansion from improved operating efficiency that will reduce leverage to the mid-3x area by the end of fiscal 2021,” S&P said.

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