INTERNET BUSINESS NEWS-(C)1995-2011 M2 COMMUNICATIONS
7 March 2011 - S&P on Friday confirmed the B+ corporate credit rating with a "stable" outlook on US professional and managed IT services provider Presidio Inc after it agreed to be taken over by middle-market private equity firm American Securities (AS) in February.
The service further gave a B+ rating to the the company's USD325m (EUR232m) senior secured term loan.
This debt was also attached a recovery rating of 4 on expectations for average (30-50%) recovery in a default scenario.
The company will use the term loan together with a partial drawdown under its USD150m accounts receivable securitisation facility to refinance existing debt, pay a portion of the stock buyback, and for general corporate purposes.
The current rating of Presidio is constrained by its narrow geographic presence confined to the to east of the Mississippi and its leveraged financial profile with limited debt reduction possibility given its private equity ownership, the service said.
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