S&P rates Informatica loans B, notes CCC+

Standard & Poor’s said it assigned a B corporate credit rating to Informatica LLC.

The agency also said it assigned a B rating and 3 recovery rating to the company’s $1.71 billion and €250 million senior secured term loans due 2022 and to its $150 million revolving credit facility due 2020. The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to the company’s $650 million senior unsecured notes due 2023. The 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is negative.

Private equity firm Permira and the Canada Pension Plan Investment Board, along with strategic investors Microsoft Corp. and Salesforce Ventures, closed their leveraged buyout of Informatica LLC.

The ratings reflect an expectation that adjusted leverage will decrease to less than 8x over the next 12- to 18-months, S&P said.

The ratings also consider the company’s narrow market focus and competitive operating environment, but also its market leadership positions and good exposure to high-growth segments, the agency said.

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