S&P: Infor unchanged after $600 million add-on

Standard & Poor’s said the B corporate credit rating on Infor Inc. is unchanged following news that the company will issue an additional $600 million of its 6½% senior notes.

The company will use the proceeds to repay the $560 million outstanding on its 11½% senior notes due 2018 and to pay related fees, S&P said.

The transaction will reduce annual interest expense by about $25 million, the agency said.

Also unchanged are the issue-level and recovery ratings on the company’s secured, unsecured and holding company debt given that new notes and the notes to be refinanced are both unsecured, S&P said.

The incremental principal balance does not materially affect the company’s credit quality, the agency said.

The ratings reflects an expectation that Infor’s leverage will increase to the low- to mid-8x range in the fiscal year ending April 2016, S&P added.

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