S&P gives RPX B, facilities B+

S&P said it assigned its B issuer credit rating to RPX Corp. The outlook is stable.

The agency also assigned its B+ issue-level rating to the proposed first-lien credit facilities to be issued by Riptide Purchaser Inc. prior to the completion of the acquisition of the company by HGGC LLC, which include a $20 million revolving credit facility due in 2023 and a $240 million term loan due in 2024.

The 2 recovery rating indicates an expectation for substantial recovery (80%-90%; rounded estimate: 85%) in the event of payment default.

“Our ratings on RPX reflect the company's revenue concentration in the niche patent risk management services segment, limited pricing power, risk of regulatory changes affecting the volume of patent litigation and financial sponsor ownership,” S&P said in a news release.

“These factors are partially offset by a leading position in the niche patent risk management segment of legal services, good brand reputation and relatively low starting leverage.”

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