S&P lowers Flexera, rates loans B-, CCC+

S&P said it lowered the corporate credit rating on Flexera Software LLC to B- from B.

The outlook is stable.

The agency also said it assigned a B- rating and 3 recovery rating to Flexera's revolving credit facility and senior secured first-lien term loan.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 5 recovery rating to the company's $125 million second-lien term loan.

The 5 recovery rating indicates 10% to 30% expected default recovery.

The ratings reflect the updated view of Flexera's financial risk profile with pro forma adjusted leverage in the low-8x range upon the close of the proposed transaction, S&P said.

Leverage could drop to the low-7x range over the next 12 months, the agency said, and it expects the company to generate annual free cash flow of $40 million or better in 2018.

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