Research Update: PointClickCare Technologies Inc. 'B' Rating Affirmed On Dividend/Refinancing Plan; Outlook Stable; New Debt Rated

Ontario-based health care software provider PointClickCare Technologies Inc. (PCC) plans to issue a new, $1.625 billion term loan B to fund an $850 million shareholder dividend and repay the balance of its outstanding term loan. Pro forma for the transaction, we expect S&P Global Ratings-adjusted gross leverage to increase to 7.4x from 3.9x as of July 31, 2024. We affirmed our 'B' issuer credit rating on PCC. We also assigned our 'B' rating with a '3' recovery rating to the company's proposed term loan B. The stable outlook reflects our expectation that organic revenue growth and stable EBITDA margins will allow the company to reduce leverage to around 6.6x in fiscal 2025. It also reflects our expectation the company will

...- Ontario-based health care software provider PointClickCare Technologies Inc. (PCC) plans to issue a new, $1.625 billion term loan B to fund an $850 million shareholder dividend and repay the balance of its outstanding term loan. - Pro forma for the transaction, we expect S&P Global Ratings-adjusted gross leverage to increase to 7.4x from 3.9x as of July 31, 2024. - We affirmed our 'B' issuer credit rating on PCC. We also assigned our 'B' rating with a '3' recovery rating to the company's proposed term loan B. - The stable outlook reflects our expectation that organic revenue growth and stable EBITDA margins will allow the company to reduce leverage to around 6.6x in fiscal 2025. It also reflects our expectation the company will continue to generate free operating cash flow (FOCF) greater than 3% of debt....

Research Update