S&P puts Extensity on negative watch

Standard & Poor's said it placed Extensity Sarl's B corporate credit and senior secured debt ratings on CreditWatch with negative implications following the company's announcement that it intends to acquire Systems Union Group plc for $393 million.

The acquisition will be financed through equity capital to be provided by Golden Gate Capital, Extensity's equity sponsor, a bridge facility and an increase in Extensity's existing senior secured credit facilities. S&P said Extensity's current leverage measures, with debt to EBITDA of about 6x, are likely to weaken, depending on the final equity contribution and the extent of cost savings and operational synergies.

Systems Union, which generated about $200 million in revenue in 2005 and about $30 million in EBITDA, has a European orientation that complements Extensity's primarily U.S. customer base and modestly strengthens Extensity's current business risk profile, the agency said.

© 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.