S&P rates Autodesk loan BBB

S&P said it assigned a BBB rating to Autodesk Inc.'s new revolving credit facility and term loan.

The proceeds will be used to fund the PlanGrid acquisition in December 2018.

The BBB rating is the same as the ratings on the company and on its existing unsecured debt, S&P said, reflecting no meaningful contractual or structural subordination.

The $650 million unsecured revolving credit facility expires Dec. 17, 2023, the agency said, and the $500 million term loan matures Dec. 19, 2020.

The BBB corporate credit rating on Autodesk reflects its good market position, very high recurring revenue and leverage expected to fall to less than 2x in 2020 as EBITDA exceeds pre-transition levels, S&P said.

Partly offsetting these factors is the exposure to cyclical construction and manufacturing end markets, the agency said.

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