S&P assigns Hyland Software B, loans BB-, CCC+

Standard & Poor's said it assigned its B corporate credit rating to Hyland Software Inc.

The outlook is positive.

At the same time, the agency said it assigned its BB- bank loan rating and 1 recovery rating to the company's proposed $100 million, first-priority senior secured bank facility, which will consist of an $80 million term loan due 2013 and a $20 million revolving credit facility due 2012.

S&P noted that it assigned its CCC+ bank loan rating, with a recovery rating of 6 to the proposed $30 million, second-priority term loan due 2014, adding that proceeds from the first- and second-lien term loans, totaling $110 million, along with $151 million of equity from sponsors and management and $5 million of cash on hand, will be used to fund the purchase of Hyland.

According to the agency, the ratings on Hyland reflect the company's focus on a fragmented and competitive ECM market, the presence of larger players with better financial resources and high leverage.

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