S&P rates Veritas loan B+, notes B+, CCC+

Standard & Poor’s said it assigned a preliminary B corporate credit rating to Veritas. The outlook is stable.

S&P assigned a preliminary B+ issue-level rating and preliminary 2 recovery rating to the company’s proposed $3.6 billion first-lien credit facility, consisting of a $300 million five-year revolving credit facility, a $2.45 billion seven-year term loan B and €760 million seven-year term loan B.

S&P also assigned a preliminary B+ issue-level rating and 2 recovery rating to the company’s proposed $500 million senior secured notes. The 2 recovery rating indicates an expectation for substantial (70%-90%; lower half of the range) recovery in the event of payment default.

S&P also assigned a preliminary CCC+ issue-level rating and preliminary 6 recovery rating to the proposed $1.775 billion eight-year unsecured notes. The 6 recovery rating indicates an expectations for negligible (0%-10%) recovery in the event of payment default.

“The preliminary rating on Veritas is based on a ‘fair’ business risk profile and ‘highly leveraged’ financial risk profile, reflecting the firm's high leverage, the potential for sales disruption as the firm seeks to transition to a direct rather than channel-based sales strategy, and limited product diversity,” said S&P credit analyst James Thomas in a news release.

© 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.