S&P: Infor unchanged

Standard & Poor’s said the ratings on Infor Inc. are unchanged following news that the company will issue $500 million senior secured notes due 2020 as opposed to an earlier announcement that it will issue $400 million senior secured notes.

The increased issue amount has a modest impact on the credit metrics, but doesn’t change the B+ rating on the notes.

The recovery rating will be 2, indicating 70% to 90% expected default recovery.

The ratings on the company’s unsecured debt and holding company notes also are unchanged, along with the company’s B corporate credit rating and stable outlook.

The ratings reflect the competitive marketplace with significantly larger players and the company’s meaningful exposure to manufacturing and distribution end-markets, but also the company’s strong position among mid-market customers, the agency said.

The ratings also consider a view of Infor’s leverage, which is expected to peak in the 9x range in fiscal 2016, up from the low-8x range as of April 30, pro forma for the acquisition, S&P said.

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