S&P assigns IntraLinks loan BB

Standard & Poor's said it assigned its BB issue-level rating to IntraLinks Inc.'s proposed $80 million term loan due 2019.

The 1 recovery rating indicates an expectation for very high recovery (90% to 100%) in the event of payment default.

The company intends to use the proceeds to repay the $75 million outstanding on its current term loan due June 2014 and to pay transaction costs.

The B+ corporate credit rating on Intralinks is unchanged and the outlook is stable.

S&P said the ratings reflect Intralinks' "significant" financial risk profile with leverage in the high-4x area at Dec. 31 (pro forma for the proposed transaction and including the treatment of capitalized software development as an operating expense), but that the agency also expects leverage to fall below 4x in 2014 driven by mid-to-high single-digit revenue growth and modestly expanding profitability resulting from operating leverage.

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