Cornerstone OnDemand Inc. Rated 'B' On Saba Acquisition; Outlook Stable

On Feb. 24, 2020, learning and people development software-as-a-service (SaaS) provider Cornerstone OnDemand Inc. agreed to acquire talent experience solutions provider Saba for approximately $1.295 billion. Cornerstone issued a new credit facility consisting of a $150 million revolving credit facility and $1.005 billion first-lien term loan. S&P Global Ratings assigned a 'B' issuer credit rating to Cornerstone and a 'B' issue rating to its revolving credit facility and first-lien term loan, with a '3' recovery rating. The stable outlook reflects the expectation that even though leverage will start near the 7x area, Cornerstone should achieve modest top-line growth and cost savings plan without disruptions to the business that should decrease leverage low-6x area in 2020. NEW YORK (S&P Global Ratings)

...April 22, 2020 - On Feb. 24, 2020, learning and people development software-as-a-service (SaaS) provider Cornerstone OnDemand Inc. agreed to acquire talent experience solutions provider Saba for approximately $1.295 billion. - Cornerstone issued a new credit facility consisting of a $150 million revolving credit facility and $1.005 billion first-lien term loan. - S&P Global Ratings assigned a 'B' issuer credit rating to Cornerstone and a 'B' issue rating to its revolving credit facility and first-lien term loan, with a '3' recovery rating. - The stable outlook reflects the expectation that even though leverage will start near the 7x area, Cornerstone should achieve modest top-line growth and cost savings plan without disruptions to the business that should decrease leverage low-6x area in 2020. NEW YORK (S&P Global Ratings) April 22, 2020--S&P Global Ratings today took the rating actions listed above. Cornerstone's S&P Global Ratings'-adjusted starting leverage will be around 7x with its...

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