Research Update: Nexus Buyer LLC (IntraFi Network) Outlook Revised To Stable From Positive On Debt-Funded Dividend; New Debt Rated

Washington, D.C.-based provider of Federal Deposit Insurance Corp. (FDIC)-insured deposit services Nexus Buyer LLC (IntraFi Network) will issue $540 million in new second-lien debt and use $96 million cash on hand to fund a $515 million shareholder dividend, pay $113 million in change-of-control expenses related to its 2019 leveraged buyout (LBO), and pay associated fees and expenses. We expect the company's S&P Global Ratings-adjusted leverage will increase to about 9x from about 6x as of the last 12 months ended June 30, 2021, on a pro forma basis. As a result, we revised the outlook to stable from positive and affirmed our 'B-' issuer credit rating. At the same time, we affirmed our 'B-' issue level rating and '3' recovery

...- Washington, D.C.-based provider of Federal Deposit Insurance Corp. (FDIC)-insured deposit services Nexus Buyer LLC (IntraFi Network) will issue $540 million in new second-lien debt and use $96 million cash on hand to fund a $515 million shareholder dividend, pay $113 million in change-of-control expenses related to its 2019 leveraged buyout (LBO), and pay associated fees and expenses. - We expect the company's S&P Global Ratings-adjusted leverage will increase to about 9x from about 6x as of the last 12 months ended June 30, 2021, on a pro forma basis. - As a result, we revised the outlook to stable from positive and affirmed our 'B-' issuer credit rating. - At the same time, we affirmed our 'B-' issue level rating and '3' recovery rating on the company's first-lien credit facility. Additionally, we assigned our '###' rating and '6' recovery rating to the new second-lien term loan. - The stable outlook reflects our expectation IntraFi will continue its strong operating performance, such...

Research Update