CommerceHub Inc. Assigned 'B-' Corporate Credit Rating, Stable Outlook On Acquisition Agreement; Debt Also Rated

Private equity firms GTCR and Sycamore Partners have agreed to acquire Albany, N.Y.-based drop-ship fulfillment software provider CommerceHub Inc. The acquisition will be funded with a $30 million first-lien revolving credit facility, $305 million first-lien term loan, $145 million second-lien term loan, and $623 million of cash equity split equally between GTCR and Sycamore Partners. We are assigning our 'B-' corporate credit rating to CommerceHub. At the same time, we are assigning our 'B-' issue-level rating and '3' recovery rating to the company's proposed first-lien credit facility. The stable outlook reflects our expectation that CommerceHub's credit ratios will rapidly improve over the next 12 months. Its revenues and earnings should benefit from growing new customer count and increasing transaction volumes

...+ Private equity firms GTCR and Sycamore Partners have agreed to acquire Albany, N.Y.-based drop-ship fulfillment software provider CommerceHub Inc. + The acquisition will be funded with a $30 million first-lien revolving credit facility, $305 million first-lien term loan, $145 million second-lien term loan, and $623 million of cash equity split equally between GTCR and Sycamore Partners. + We are assigning our 'B-' corporate credit rating to CommerceHub. + At the same time, we are assigning our 'B-' issue-level rating and '3' recovery rating to the company's proposed first-lien credit facility. + The stable outlook reflects our expectation that CommerceHub's credit ratios will rapidly improve over the next 12 months. Its revenues and earnings should benefit from growing new customer count and increasing transaction volumes supported by favorable e-commerce trends. TORONTO (S&P Global Ratings) April 27, 2018--S&P Global Ratings today assigned its 'B-' corporate credit rating to Albany,...

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