Cloudera Inc., a U.S.-based software provider for big data and analytics, entered into a definitive agreement to be acquired by KKR&Co. and Clayton Dubilier&Rice LLC for approximately $5.3 billion. The company will fund the transaction with approximately $2.765 billion of sponsor equity, a $1.64 billion first-lien term loan, $500 million second-lien term loan, and an undrawn $250 million revolver. We lowered our issuer credit rating on Cloudera to 'B-' from 'BB-' because of the higher leverage. We are also assigning our 'B-' issue-level and '3' recovery ratings to the company's new first-lien debt, and our 'CCC' issue-level and '6' recovery ratings to the new second-lien term loan. The stable outlook reflects our expectation Cloudera will generate
