S&P rates Dodge Data B-, loans B-, CCC

S&P said it gave B- ratings to Dodge Data & Analytics LLC (Dodge Construction Network) and its planned first-lien credit facilities. The agency also rated Dodge’s second-lien term loan CCC. The recovery ratings on the first-lien debt are 3 and 6 on the second-lien loan.

Dodge plans to issue a $40 million first-lien revolving credit facility, a $455 million first-lien term loan and a $130 million second-lien term loan which along with $430 million in cash and rollover equity (about 43% of enterprise value) will fund the recapitalization of the company by financial sponsors Clearlake Capital Group and Symphony Technology Group.

“High starting leverage and financial sponsor ownership limit the company's margin for merger integration miscues. Following the recapitalization, the company's S&P Global Ratings-adjusted gross leverage will increase to over 9x as of the trailing-12-month period to Sept. 30, 2021, and to 7.4x pro forma for merger integration cost synergies. Our ratings reflect the risk that its private equity financial sponsors maintain an aggressive financial policy with elevated leverage, and any organic EBITDA growth and deleveraging could be offset by debt-financed acquisitions or dividends,” S&P said in a press release.

The agency said it sees leverage declining to the low-7x range in 2022.

The outlook is stable.

© 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.