S&P assigns BBB to Roper notes

S&P said it assigned its BBB issue-level rating to Roper Technologies Inc.'s proposed senior unsecured notes.

The agency expects that the company will issue about $1.2 billion of notes in two tranches with different maturities (one in 2021 and the other in 2026).

Proceeds, along with revolver borrowings, will be used to fund its $2.8 billion acquisition of Deltek Inc.

All other ratings on Roper remain unchanged.

While the purchase multiple is high – at 14 times Deltek's projected 2017 EBITDA – the acquisition will broaden Roper's foray into the software-as-a-service (SaaS) market, increase the diversity of its product mix and potentially enhance its already strong profitability, S&P said.

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