S&P Assigns 'B-' Rating to Cvent, Inc. (CVT) Amid Recent Merger Deal
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
S&P Global Ratings said it assigned its 'B-' corporate credit rating to Cvent Inc. (NYSE: CVT). The outlook is stable.
At the same time, we assigned our 'B' issue-level rating and '2' recovery rating to the company's $460 million first-lien credit facility, which consists of a $40 million revolver (undrawn at close), and a $420 million first-lien term loan. The '2' recovery rating indicates our expectation for substantial recovery (70%-90%; lower end of the range) prospects for lenders in the event of a payment default. We also assigned our 'CCC' issue-level rating and '6' recovery rating to the company's $258 million second-lien term loan. The '6' recovery rating indicates our expectation for negligible
recovery (0%-10%) prospects for lenders in the event of a payment default.
"Our 'B-' corporate credit rating primarily reflects the combined entity's high leverage at transaction close, which we expect to remain over 10x through the end of 2016 and into the first half of 2017, significant integration risk related to the Lanyon combination, and particularly low EBITDA margins for a software company," said S&P Global Ratings credit analyst Dee Banson.
Cvent's leading position in event management software, which will be further bolstered by the contribution of Lanyon, along with a track record of revenue growth over 20% annually and low customer concentration partially offset these weaknesses.
The stable outlook reflects our expectation that despite high leverage and below average EBITDA margins, Cvent's leadership position in software event planning and management will generate strong top-line and EBITDA growth, and positive free cash flow over the next year.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- S&P Upgrades Mid-America Apartment (MAA) to 'BBB+' Amid Completed Merger; Outlook Stable
- Fitch Rates Nabors Industries (NBR) Unsecured Notes at 'BBB-'; Outlook Negative
- Jefferies Raises Price Target on Zumiez, Inc. (ZUMZ) to $23 Following 3Q