Nexus Buyer LLC's Proposed $2.067 Billion First-Lien Term Loan Due 2031 Rated 'B-' (Recovery Rating: '3')

ENGLEWOOD (S&P Global Ratings) July 12, 2024--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to Nexus Buyer LLC?s (IntraFi) proposed $2.067 billion first-lien term loan due 2031. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery for lenders in the event of a default. The company plans to use the proceeds from this issuance to repay $1.867 billion in existing first-lien term loan debt and fund a $200 million shareholder distribution. Our ratings on IntraFi, including our 'B-' issuer credit rating, are unchanged. The positive outlook reflects the possibility we could upgrade the company in the next 12 months if we believe its financial policy will enable it to sustain

...- IntraFi's debt capitalization includes a $100 million revolving credit facility due 2031, a $2.067 billion first-lien term loan due 2031, and a $540 million second-lien term loan due in 2029. - Our simulated default scenario contemplates a default in 2026 amid industry changes that decrease banks' demand for deposit liquidity--reducing deposit balances and compressing fees and spreads across IntraFi's network--a reversal of recent advantageous regulatory trends that have spurred demand for reciprocal deposits, or increased competition from alternative...

Ratings Action