S&P rates Syndigo B-, loans B-, CCC

S&P said it gave Cloud9 Acquisition, Inc. (Syndigo LLC) a B- issuer rating. The agency also assigned a B- rating and 3 recovery rating to Syndigo’s new first-lien credit facility comprising $375 million in term loans and a $50 million revolving credit facility. Syndigo’s new second-lien $160 million facility was assigned a CCC rating with 6 recovery rating.

The issuer rating represents the strength of its content experience hub software as a service platform within the highly fragmented marketplace and the potential to materially increase its market share as its platform uptake increases among manufacturers and retailers, S&P said.

The outlook is stable. “The stable outlook reflects our view that Syndigo will generate free operating cash flow (FOCF) to debt of at least 3% in 2021, which we view as sufficient to service its debt obligations. The outlook also reflects our expectation that revenue growth will be in the 18%-20% range in 2021, driven by the full-year benefit of acquisitions and organic growth through new client wins,” S&P said.

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