Moody's rates Rocket Software loan B1

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to BCPE Rover Merger Sub, Inc.

Moody's also said it assigned B1 (LGD 3) ratings to the company's proposed $1.24 billion senior secured first-lien term loan and $125 million senior secured first-lien revolver, as well as a Caa1 rating to its proposed $320 million senior secured second-lien term loan.

The proceeds from the debt will be used to finance the acquisition of Rocket Software from Court Square Partners by funds affiliated with Bain Capital, the agency said.

Following the acquisition, BCPE Rover Merger is expected to merge with Rocket Software, Inc., which will be the remaining entity.

The outlook is stable.

The ratings reflect the company's relatively small scale compared to its infrastructure software peers, as well as the company's acquisition appetite, Moody's said.

The company has limited organic growth prospects and looks to strategic acquisitions for growth and improved market position, the agency said.

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