Moody's assigns Ba3 to Evertec, loan Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating and a B1-PD probability of default rating to Evertec Group, LLC. The agency also assigned a Ba3 rating to the company's $415 million existing backed senior secured term loan A and $200 million backed senior secured revolving credit facility, and to the planned $600 million backed senior secured term loan B. Moody's also assigned an SGL-1 speculative grade liquidity rating. The outlook is stable.

“The Ba3 CFR reflects Evertec's very strong market position in Puerto Rico, increased diversification by customer and geography with the acquisition of Sinqia and solid credit metrics. The rating also takes into account the company's modest size for the rating level, as well as the still elevated concentration in Puerto Rico, which is subject to climate events and low growth dynamics,”

“At the same time, concentration in Puerto Rico with about 60% of its sales coming from the island pro forma for the Sinqia acquisition, which comes with hurricane and earthquake risks as well as a low growth economy, dampens expansion opportunities,” the agency said in a statement.

Evertec will use the new loan for the acquisition of Sinqia SA, including refinancing debt at the target and paying fees and other expenses.

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