Applied Systems Inc. Ratings Are Unaffected By Its Plan To Pay A $171 Million Dividend

NEW YORK (S&P Global Ratings) Oct. 11, 2016--S&P Global Ratings today said that Chicago-based property and casualty management software provider Applied Systems Inc.'s intention to pay a $171 million dividend to its private equity shareholder Hellman and Friedman has no immediate ratings impact. Applied Systems plans to fund the dividend with a $150 million add-on to its first-lien term loan facility due 2021 and $25 million draw from its cash balance. The issue-level rating on the first-lien debt remains 'B+'. The recovery rating is '2', indicating our expectation for substantial recovery (70%-90%; lower end of the range) in the event of a payment default. The stable outlook reflects our expectation that Applied Systems will maintain its market position as one

...NEW YORK (S&P Global Ratings) Oct. 11, 2016--S&P Global Ratings today said that Chicago-based property and casualty management software provider Applied Systems Inc.'s intention to pay a $171 million dividend to its private equity shareholder Hellman and Friedman has no immediate ratings impact. Applied Systems plans to fund the dividend with a $150 million add-on to its first-lien term loan facility due 2021 and $25 million draw from its cash balance. The issue-level rating on the first-lien debt remains 'B+'. The recovery rating is '2', indicating our expectation for substantial recovery (70%-90%; lower end of the range) in the event of a payment default. The stable outlook reflects our expectation that Applied Systems will maintain its market position as one of two leading players in the property and casualty insurance broker management software industry. Additionally, we expect that the company's revenues will continue to increase by mid-single-digit percentages on an organic basis...

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