S&P rates Tibco loans B

S&P said it assigned a B rating and 2 recovery rating to the amended and extended senior secured bank credit facilities issued by Balboa Intermediate Holdings LLC's subsidiary, Tibco Software Inc., comprised of a $125 million revolver due 2024 and $1.824 billion term loan due 2026.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The B- issuer credit rating on Balboa and CCC+ issue-level rating on its senior unsecured notes due 2021 are unaffected by this leverage-neutral transaction, S&P said.

The 5 recovery rating on the senior unsecured notes also is unchanged, indicating 10% to 30% expected default recovery.

The agency said it plans to withdraw the ratings on the company's existing senior secured term loan and revolving credit facility at the close of the transaction.

The proposed amendment will only modestly improve the company's capital structure because these amended and extended facilities contain a springing maturity provision, S&P said.

The new credit agreement also will contain weaker covenant protections, including an unlimited capacity to pay dividends, a weaker restricted payment provision and an EBITDA definition that includes the change in deferred revenue, the agency said.

The transaction also does not change a view of the company's large debt burden, weak credit measures and aggressive financial policies, S&P said.

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