S&P: Flexera view to negative

S&P said it revised the outlook on Flexera Software LLC to negative from stable and affirmed the B corporate credit rating.

The agency also affirmed the B issue-level rating on the company's $25 million revolving credit facility and the upsized first-lien term loan. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate of 55%) recovery in the event of a payment default.

S&P also affirmed the B- issue-level rating on the company's $125 million second-lien term loan. The 5 recovery rating indicates an expectation for modest (10%-30%; rounded estimate of 10%) recovery in the event of a payment default.

“The negative outlook reflects our updated view of Flexera's financial risk profile, with pro forma adjusted leverage around the high 9x area after the close of the BDNA acquisition, which is higher than our previous downgrade threshold of the mid-9x area,” S&P credit analyst Minesh Shilotri said in a news release.

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