Moody’s rates Rocket loans B3

Moody’s Ratings said it rated Rocket Software, Inc.’s planned $1 billion senior secured incremental first lien term loan, $360 million senior secured revolving credit facility, and $1 billion other secured debt. The agency concurrently downgraded the ratings on the company's senior secured first-lien credit facilities, comprising a $1.4 billion term loan, a €575 million term loan, and a $14.6 million revolving credit facility, to B3 from B2.

Pro forma for the transaction, the total revolving credit facility size will be about $375 million which includes $14.6 million revolver, downsized from $152.9 million upon close, due November 2026 and a $360 million revolver due August 2028.

The term loan and notes are expected to be used, along with cash from the balance sheet and new cash equity, to fund the acquisition of the application modernization and connectivity business of OpenText Corp. for $2.275 billion.

“The downgrade of Rocket's senior secured credit facilities reflects the debt's large relative size of the capital structure following the issuance of new senior secured debt,” Moody’s said in a press release.

The outlook remains stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.