S&P takes a positive view on Renaissance

S&P said it revised its outlook on Renaissance Holding Corp. to positive from stable and affirmed the B- ratings on the issuer and its first-lien term loan. The agency also affirmed the CCC rating on the second-lien loan.

“Renaissance has been improving its business by expanding and diversifying its product offerings .The company has transformed its learning platform, expanding it from just Star Assessments and Accelerated Reader to a diverse product offering that includes Freckle, Nearpod, myON, Schoolzilla and Lalilo products. Renaissance has also more than doubled its revenues to greater than $650 million (from $270 million in 2017 revenues) while expanding the proportion of its total revenue that it derives from international sales to more than 15%,” the agency said in a press release.

The improved outlook reflects the company’s high level of recurring revenue, strong profitability, 100%+ net retention rates, and improving financial metrics after its acquisition of GL Education. “We expect the company will generate positive free cash flow and deleverage to the mid-7x area over the next 12 months,” S&P said.

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