S&P revises Datasite view to positive

S&P said it changed the outlook for Mermaid Bidco Inc. (Datasite) to positive from stable and affirmed its ratings, including the B- rating on its $365 million floating-rate term loan. The 3 (60%) recovery rating is unchanged.

Datasite performed well throughout 2021, delivering solid EBITDA growth and cash flow generation ahead of expectations, the agency said. This has resulted in deleveraging to the low-7x range on an S&P Global Ratings-adjusted basis as of the second quarter, from the ~10x area following the leveraged buyout in December.

“We are revising the outlook to positive based our expectation that continued growth in earnings that could result in leverage sustained below our upgrade threshold of 7x and free operating cash flow (FOCF)/debt above 10%, notwithstanding additional investments in sales and marketing,” S&P said in a press release.

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