Moody's upgrades Infor notes, rates new notes B3

Moody's Investors Service said it assigned a B3 (LGD5) rating to Infor (US), Inc.'s proposed senior note offering, upgraded the company's existing senior notes to B3 (LGD5) from Caa1 (LGD5) and affirmed its senior secured credit facilities at Ba3 (LGD2). The agency also affirmed Infor Software Parent, Inc.’s senior bonds at Caa1 (LGD6) and Infor, Inc.’s probability of default rating at B2-PD and corporate family rating at B2. The outlook remains negative.

Note proceeds will be used to repay existing Infor notes.

The agency said that the B3 rating on Infor's proposed and existing senior unsecured notes reflects its position junior to the secured debt in the capital structure but senior to the holding company debt and that the existing senior unsecured notes were revised upward due to the reduction of first-lien debt within the capital structure.

The B2 corporate family rating is primarily driven by the expectation of continued high leverage (in excess of 7x) and is considered weakly positioned in the B2 category, Moody’s said.

The ratings also reflect Infor's leading mid-market position in the enterprise software industry, scale, stability of maintenance revenues and gross margins and modest but predictable free cash flow generating capabilities, the agency said.

The negative outlook reflects the limited flexibility in the rating category if the company pursues even modest debt-financed acquisitions or EBITDA declines, Moody’s 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.