Nexus Buyer LLC's Proposed $500 Million First-Lien Tem Loan Due 2028 Rated 'B-' (Recovery Rating: '3')

ENGLEWOOD (S&P Global Ratings) Dec. 6, 2023--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to Nexus Buyer LLC's (IntraFi) proposed $500 million first-lien term loan due 2028. 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 fund a $447 million shareholder distribution, repay its $33 million outstanding revolver balance, and pay transaction fees and expenses. The proposed transaction does not affect our 'B-' issuer credit rating or positive outlook on IntraFi. The positive outlook reflects that we could upgrade the company in the next 12 months if we believe its financial

...enterprise value. - We believe IntraFi would reorganize following a default given its industry-leading bank network relationships. Therefore, we value the company using a 7x multiple of our projected emergence EBITDA. Simulated default assumptions - Simulated year of default: 2025 - Emergence EBITDA: about $150 million - EBITDA multiple: 7x - Revolver drawn at default: 85% Simplified waterfall - Net enterprise value (after 5% administrative costs): About $1 billion - First-lien debt claims: About $1.7 billion - --Recovery expectations: 50%-70% (rounded estimate: 60%) - Second-lien debt claims: About $564 million - --Recovery expectations: 0%-10% (rounded estimate: 0%)...

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