Javelin Buyer Inc.'s Solid Subscription Revenue Growth Will Enable It To Grow Into Its New Capital Structure

This report does not constitute a rating action. Concurrent with Vista Equity Partners? leveraged buyout (LBO) in the fourth quarter of 2024, the company increased its cash-interest-bearing debt load by over $300 million. On an annualized basis, based on current SOFR rates and the new first-lien term loan pricing of S + 275 basis points, we estimate this will increase Jaggaer?s annual cash interest burden by over $20 million relative to its capital structure under its prior ownership. The company?s repricing and solid forecasted operating performance will help support its highly leveraged capital structure; however, our forecast for its free operating cash flow (FOCF) is more muted than it has been historically due to its higher cash interest expense. Jaggaer

...October 3, 2025 This report does not constitute a rating action. Elevated cash interest payments will constrain cash flow generation this year, though S&P Global Ratings anticipates Javelin (d/b/a Jaggaer) will improve its cash flow generation in 2026. Concurrent with Vista Equity Partners' leveraged buyout (LBO) in the fourth quarter of 2024, the company increased its cash-interest-bearing debt load by over $300 million. On an annualized basis, based on current SOFR rates and the new first-lien term loan pricing of S + 275 basis points, we estimate this will increase Jaggaer's annual cash interest burden by over $20 million relative to its capital structure under its prior ownership. The company's repricing and solid forecasted operating performance will help support its highly leveraged capital structure; however, our forecast for its free operating cash flow (FOCF) is more muted than it has been historically due to its higher cash interest expense. Jaggaer has interest-rate hedges in...

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