Moody’s: Veritas CFR B2; loans, notes B1; notes Caa1

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Veritas Bermuda Ltd. (Veritas).

The agency also assigned a B1 rating to Veritas' and co-borrower Veritas US Inc.'s first-lien credit facilities and senior secured notes, as well as a Caa1 rating to its unsecured notes.

Proceeds are being used to finance Carlyle Group's acquisition of Symantec Corp. information management business.

The outlook is stable.

Moody’s said the B2 rating is driven by Veritas' very high leverage levels, offset to some degree by its scale and stable maintenance revenue streams and resulting free cash flow generation. Given the evolution in storage architectures and the company's challenges in reviving growth, Veritas is considered weakly positioned in the B2 rating category.

Pro forma closing leverage is roughly 7 times, based on the estimated run-rate EBITDA of Veritas on a stand-alone basis. (GAAP based leverage is significantly higher). Leverage is expected to decline below 6.5 times over the next twelve to eighteen months driven by improving EBITDA levels and modest debt paydowns.

© 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.