S&P trims TeamViewer, rates loans B, CCC+

S&P said it lowered to B from B+ its long-term corporate credit rating on TigerLuxOne Sarl (TeamViewer), a remote access software and online meeting software provider. The outlook is stable.

S&P also lowered to B from B+ the long-term corporate credit rating on TeamViewer's fully owned financing subsidiary Regit Eins GmbH.

At the same time, S&P assigned a B issue-level rating to the company's proposed $550 million first-lien senior secured credit facility and $35 million revolving credit facility. The 3 recovery rating on the first-lien and revolving debt indicates an expectation of meaningful recovery, at the higher end of the 50% to 70% range, in the event of a payment default.

S&P also assigned a CCC+ issue-level rating on the company's proposed second-lien term loan. The 6 recovery rating indicates an expectation of negligible (0% to 10%) recovery in the event of payment default.

“The downgrade follows TeamViewer's announcement that it is seeking to raise $765 million of new senior secured credit facilities, and it will use the proceeds, along with cash on balance sheet to fully refinance its existing debt and distribute a special dividend to the financial sponsor.

“We believe that TeamViewer's aggressive financial policies will result in significantly weaker credit protection measures than we had previously forecast,” S&P said in a news release.

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