S&P assigns IXS, loan B

S&P said it assigned B ratings to IXS Holdings, Inc. and its proposed $620 million first-lien term loan. The agency also assigned a 3 recovery rating to the loan. IXS will also obtain a $75 million asset-based credit facility.

The loans along with common equity will be used by Clearlake Capital Group, LP to acquire IXS.

“We believe IXS' financial policies will continue to remain aggressive with its new ownership by financial sponsor Clearlake. Although IXS has used cash on hand to repay outstanding debt, based on our assessment of Clearlake's financial policies, we view significant debt reduction as unlikely, given the potential for future debt-financed acquisitions or dividend recapitalizations,” said S&P in a press release.

The outlook is stable.

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