Balboa Intermediate Holdings LLC Upgraded To 'B' On Proposed Refinancing; Outlook Stable

Balboa Intermediate, dba TIBCO, is proposing to refinance its $950 million of unsecured notes, with proceeds from an incremental $360 million add-on to its first-lien term loan due 2026 alongside a new $650 million second-lien term loan due 2028. The transaction will modestly increase debt balances, but lower interest costs should benefit future cash flow generation and does not include a dividend to the company's financial sponsor, Vista, which was previously a key constraint for a higher rating With estimated leverage around 7.9x as of Nov. 31, 2019, and expectation for moderate deleveraging through EBITDA growth in 2020, we now have greater confidence in the company's ability to sustain leverage below 8x in the future. As a result, we are

...+ Balboa Intermediate, dba TIBCO, is proposing to refinance its $950 million of unsecured notes, with proceeds from an incremental $360 million add-on to its first-lien term loan due 2026 alongside a new $650 million second-lien term loan due 2028. + The transaction will modestly increase debt balances, but lower interest costs should benefit future cash flow generation and does not include a dividend to the company's financial sponsor, Vista, which was previously a key constraint for a higher rating + With estimated leverage around 7.9x as of Nov. 31, 2019, and expectation for moderate deleveraging through EBITDA growth in 2020, we now have greater confidence in the company's ability to sustain leverage below 8x in the future. + As a result, we are raising our issuer credit rating on Balboa to 'B' from 'B-' and our issue-level rating on the company's existing first-lien debt to 'B+' from 'B', which now consists of a $125 million revolving credit facility and a $2.18 billion first-lien...

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