Moody’s trims Tibco’s facility, rates loan Caa2

Moody’s Investors Service said it downgraded the rating for Tibco Software Inc.’s first-lien credit facilities to B2 from B1 and assigned a Caa2 rating to Tibco’s proposed $650 million of second-lien term loans. Tibco will use proceeds from $360 million of the incremental first-lien term loans and the new second-lien loans to redeem the $950 million of senior notes and pay fees and a premium. The outlook is stable. Moody’s will withdraw the ratings for the senior notes upon the completion of the refinancing.

The proposed transactions will modestly increase Tibco’s leverage but result in more than $25 million of annual interest savings. Moody’s estimates that pro forma for the refinancing, Tibco’s leverage will be slightly over 8x (incorporating Moody’s standard analytical adjustments, based upon preliminary financial results for 2019 and not adding-back restructuring and business optimization expenses).

Moody’s also affirmed Tibco’s B3 corporate family rating. The affirmation of the B3 rating reflects Moody’s expectations Tibco will generate flat-to-modestly positive revenue growth and generate free cash flow of about 4% of adjusted debt over the next 12 to 18 months.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.