Moody's lifts Flexera, rates loans B2

Moody's Investors Service said it upgraded Flexera Software LLC's corporate family rating to B2 from B3 and assigned a B2 (LGD 3, 35%) rating to its proposed first-lien credit facilities comprised of a $25 million revolving credit facility and a $330 million term loan.

The agency also affirmed the company's probability of default rating B3-PD.

The outlook is stable.

The upgrade reflects Flexera's good revenue growth prospects and deleveraging of the balance sheet since the leveraged buyout of the company by Teachers' Private Capital in September 2011, Moody's said.

The proceeds will be used to refinance existing first- and second-lien term loans.

The ratings also consider Flexera's challenges in growing the business by replacing the "home grown" solutions of its customers and prospects, Moody's said.

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