S&P rates EverCommerce B+

S&P said it gave preliminary B+ ratings to EverCommerce Inc. and its planned first-lien credit facilities. The facilities are expected to include a $300 million term loan and a $190 million revolving credit facility. The preliminary recovery rating is 3. The borrower of the debt is EverCommerce Solutions Inc. The outlook is stable.

EverCommerce also filed an S-1 with the Securities and Exchange Commission for an IPO.

“The B+ issuer credit rating reflects EverCommerce's initial adjusted leverage in the mid-4x area, niche focus within the highly competitive and fragmented SMB services industry, and below-software-industry-average EBITDA margins. Partly offsetting these factors are strong organic top-line growth, low customer concentration and a recurring revenue base,” S&P said in a press release.

The outlook reflects an expectation EverCommerce will organically increase revenue in the mid-teen percentages and modestly expand EBITDA margins in 2022, such that leverage declines to the mid-3x area by the end of 2022 from the initial mid-4x area post-IPO.

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