S&P: Wall Street Systems unaffected by upsizings

Standard & Poor's said Wall Street Systems Holdings Inc.'s ratings are unaffected by news of the upsizing of the company's proposed term loans.

The company is planning to upsize its first-lien term loan due 2019 to $375 million from $335 million and its proposed second-lien term loan due 2020 to $165 million from $140 million.

WSS Delaware Inc. is the borrower of the loans, S&P said.

The rating on the proposed first-lien facilities remains at B with a recovery rating of 3, indicating 50% to 70% expected recovery in a default.

The rating on the proposed second-lien facility remains at B- with a recovery rating of 5, indicating 10% to 30% recovery expectation, though the agency said it now expects recovery at the lower end of the 10% to 30% range.

S&P also affirmed its B corporate credit rating.

The outlook is stable.

The agency also said it expects the company to increase its proposed dividend to $195 million from $180 million and retain the remainder of the incremental financing as cash.

The ratings reflect the company's weak business risk profile, resulting from its narrow market focus and its revenue exposure to the financial sector and Europe, S&P said.

The ratings also consider its highly leveraged financial profile with pro forma leverage in the low-8x area, the agency said.

© 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.