Research Update: Nexus Buyer LLC Outlook Revised To Positive On Strong Operating Performance; Ratings Affirmed

Nexus Buyer LLC (IntraFi) has rapidly reduced leverage beneath 5x through earnings growth, and we forecast strong demand will support its ability to sustain this improvement over the next 12 months. While leverage is well below our upside threshold for the 'B-' rating, the company has a history of large, debt-funded distributions to shareholders following periods of EBITDA growth. As a result, we revised our outlook to positive from stable and affirmed our 'B-' issuer credit rating. At the same time, we affirmed our 'B-' issue-level rating and '3' recovery rating on the first-lien credit facility and our 'CCC' issue-level rating and '6' recovery rating on the second-lien credit facility. The positive outlook reflects the possibility of an upgrade within

...- Nexus Buyer LLC (IntraFi) has rapidly reduced leverage beneath 5x through earnings growth, and we forecast strong demand will support its ability to sustain this improvement over the next 12 months. - While leverage is well below our upside threshold for the 'B-' rating, the company has a history of large, debt-funded distributions to shareholders following periods of EBITDA growth. - As a result, we revised our outlook to positive from stable and affirmed our 'B-' issuer credit rating. - At the same time, we affirmed our 'B-' issue-level rating and '3' recovery rating on the first-lien credit facility and our '###' issue-level rating and '6' recovery rating on the second-lien credit facility. - The positive outlook reflects the possibility of an upgrade within the next 12 months if we become more certain IntraFi's financial policy will position the company to sustain S&P Global Ratings-adjusted leverage beneath 7.5x, with free operating cash flow (FOCF) to debt above 5%....

Research Update