Research Update: Cardinal Parent Inc. (d/b/a Zywave Inc.) Assigned 'B-' Rating On Acquisition By Clearlake Capital Group; Outlook Stable

Cardinal Parent, Inc. (d/b/a Zywave), a provider of front-office workflow automation software to personal and casualty (P&C) and employee benefits insurance brokerages, has entered into a definitive agreement to be acquired by Clearlake Capital Group, L.P. (together with its affiliates, "Clearlake"). We are assigning our 'B-' issuer credit rating to Cardinal Parent, Inc., a holdco of Zywave. Cardinal Parent, Inc. will also be the borrower of the debt. At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating to its $390 million first-lien credit facility, consisting of a $50 million revolving credit facility due 2025 and a $340 million first-lien term loan due 2027. We also assigned our 'CCC' issue-level rating and '6' recovery rating to

...- Cardinal Parent, Inc. (d/b/a Zywave), a provider of front-office workflow automation software to personal and casualty (P&C) and employee benefits insurance brokerages, has entered into a definitive agreement to be acquired by Clearlake Capital Group, L.P. (together with its affiliates, "Clearlake"). - We are assigning our 'B-' issuer credit rating to Cardinal Parent, Inc., a holdco of Zywave. Cardinal Parent, Inc. will also be the borrower of the debt. - At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating to its $390 million first-lien credit facility, consisting of a $50 million revolving credit facility due 2025 and a $340 million first-lien term loan due 2027. We also assigned our '###' issue-level rating and '6' recovery rating to its $150 million second-lien term loan due 2028. - The stable outlook reflects our expectation that Zywave will be able to generate consistent revenue growth based on existing secular trends in the P&C and employee benefits...

Research Update