S&P gives Clarivate notes B, CCC+

S&P said it gave its B issue-level and 3 recovery ratings to Camelot UK Holdco Ltd.'s (Clarivate) planned $1 billion of senior secured notes due 2028. The agency also assigned CCC+ issue-level and 6 recovery ratings to the company's proposed $1 billion of senior unsecured notes due 2029.

Clarivate plans to use the proceeds to partially finance its proposed $5.3 billion acquisition of ProQuest LLC. The company will also fund the transaction with its common shares, a new primary equity offering, and $1.25 billion of three-year convertible preferred shares.

“We believe the addition of this unsecured debt to Clarivate's capital structure would be incrementally beneficial for its secured lenders in a hypothetical default scenario, which leads us to forecast meaningful (50%-70%; rounded estimate: 60%) recovery for the secured debt,” S&P said in press release.

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