S&P rates Forcepoint loan B-

S&P said it assigned its B- issuer credit rating to Panther Guarantor II LLC (dba Forcepoint).

Consequently, S&P said it also assigned B- issue-level and 3 recovery ratings to Forcepoint's proposed $600 million first-lien credit facility, consisting of an undrawn $75 million revolver and a $525 million first-lien term loan.

The outlook is stable.

“Our rating reflects the high starting leverage, potential disruption from cost reduction actions, and expected negative free cash flow in 2021,” S&P said in a news release.

“Our rating is additionally informed by the company's financial sponsor ownership, which we view as presenting risk of further debt-funded acquisitions or dividend distributions should profitability improve considerably,” the agency added.

S&P noted the company’s “leading government security franchise” and “low customer concentration” as positives.

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