Bulletin: Flexera Software LLC's Proposed $210 Million Incremental First-Lien Term Loan Is Credit Neutral

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) April 12, 2024--S&P Global Ratings today said that Flexera Software LLC's (B-/Stable/--) announced $210 million fungible incremental term loan due 2028 is neutral for the company's credit quality. All of our ratings on the company, including our 'B-' issue-level rating and '3' recovery rating on the existing first-lien term loan, are unchanged. The company intends to use the proceeds, alongside cash from the balance sheet, to repay the existing $260 million second-lien term loan. We view this transaction as leverage neutral. Flexera recently closed its acquisition of SNOW Software in February 2024. We expect the company will prioritize the integration and execute planned synergies this year. With

...April 12, 2024 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) April 12, 2024--S&P Global Ratings today said that Flexera Software LLC's (B-/Stable/--) announced $210 million fungible incremental term loan due 2028 is neutral for the company's credit quality. All of our ratings on the company, including our 'B-' issue-level rating and '3' recovery rating on the existing first-lien term loan, are unchanged. The company intends to use the proceeds, alongside cash from the balance sheet, to repay the existing $260 million second-lien term loan. We view this transaction as leverage neutral. Flexera recently closed its acquisition of SNOW Software in February 2024. We expect the company will prioritize the integration and execute planned synergies this year. With contributions from SNOW and organic growth, we project Flexera's S&P Global Ratings-adjusted leverage (inclusive of preferred equity treated as debt) will improve modestly to about 14x by the end of 2024...

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