Cloudera Inc., a U.S.-based software provider for big data and analytics, will issue a $500 million first-lien term loan maturing in 2027. Proceeds will be used for general corporate purposes, including the funding of share repurchases. We are assigning our 'BB-' issuer credit rating to Cloudera. We are also assigning our 'BB-' issue-level and '3' recovery ratings to the company's first-lien debt. The stable outlook reflects our expectation Cloudera will generate organic revenue growth in the high-single-digit percentages, with modest EBITDA margin expansion from improved operating efficiency that will reduce leverage to the mid-3x area by the end of fiscal 2021. The 'BB-' rating reflects Cloudera's initial adjusted leverage in the low-4x area at close and its relatively small scale.
