Research Update: EagleView Technology Corp. 'B' Issuer Rating Affirmed On Sponsor Dividend; Outlook Revised To Negative From Stable

Bothell, Wash.-based EagleView Technology Corp., an oblique aerial imagery and 3D measurement software solutions provider, is refinancing its debt and funding a dividend distribution to one of its financial sponsors, resulting in adjusted leverage in the mid-10x area at the time of the transaction. We are affirming our 'B' issuer credit rating on the company. We are assigning a 'B+' issue-level rating and '2' recovery rating to the company's proposed secured $85 million revolving credit facility due 2023 and its $535 million first-lien term loan due 2025. At the same time, we are assigning a 'CCC+' issue-level rating and '6' recovery rating to its $230 million second-lien term loan due 2026. We are revising the outlook to negative to reflect

...+ Bothell, Wash.-based EagleView Technology Corp., an oblique aerial imagery and 3D measurement software solutions provider, is refinancing its debt and funding a dividend distribution to one of its financial sponsors, resulting in adjusted leverage in the mid-10x area at the time of the transaction. + We are affirming our 'B' issuer credit rating on the company. + We are assigning a 'B+' issue-level rating and '2' recovery rating to the company's proposed secured $85 million revolving credit facility due 2023 and its $535 million first-lien term loan due 2025. At the same time, we are assigning a '###+' issue-level rating and '6' recovery rating to its $230 million second-lien term loan due 2026. + We are revising the outlook to negative to reflect our view that although debt levels are temporarily elevated, we believe that EagleView will successfully reduce leverage to the low to mid-7x area by year-end 2019 through EBITDA growth....

Research Update