Moody's rates Flexera loans B2

Moody's Investors Service said it assigned a corporate family rating of B2 to Flexera Software Inc. and a B3 probability-of-default rating and B2 ratings (LGD3, 35%) to the company's proposed $15 million senior secured revolving credit facility due 2015 and $200 million senior secured term loan due 2016.

The outlook is stable.

Proceeds from the new credit facilities will be used to refinance the company's debt and issue a shareholder distribution of about $90 million.

The B2 corporate family rating reflects Flexera's moderate pro-forma leverage and the company's modest overall size and scale and concentrated business profile as a specialty provider of application usage management solutions, according to the agency.

The rating is constrained by Flexera's majority ownership structure by a financial sponsor, the agency noted.

The B2 corporate family rating is supported by Flexera's competitive market position and well-regarded product offerings, its deep-domain expertise and large installed base of customers, its high level of recurring revenues and its good liquidity position, Moody's said.

Pro forma debt leverage is measured by a debt-to-EBITDA ratio of about 4.1x.

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