Research Update: VeriFone Systems Inc. Affirmed At 'B' Following Plans To Raise First-Lien Debt; Outlook Remains Stable

Global payment solutions provider VeriFone Systems Inc. plans to raise $425 million of first-lien debt in the second quarter of 2019 to partially cash fund an acquisition and to repay all of its second-lien debt. The transaction will slow the pace of de-levering we envisioned at the time of the 2018 leveraged buyout, but we still expect leverage to be below 6x by the end of 2020 as the company realizes cost savings and as the costs required to achieve savings decrease. On May 6, 2019, S&P Global Ratings affirmed its 'B' issuer credit rating on Verifone as a result of the continued operating success of the company's cost savings plans and our expectation that the cost restructuring phase will

...- Global payment solutions provider VeriFone Systems Inc. plans to raise $425 million of first-lien debt in the second quarter of 2019 to partially cash fund an acquisition and to repay all of its second-lien debt. The transaction will slow the pace of de-levering we envisioned at the time of the 2018 leveraged buyout, but we still expect leverage to be below 6x by the end of 2020 as the company realizes cost savings and as the costs required to achieve savings decrease. - On May 6, 2019, S&P Global Ratings affirmed its 'B' issuer credit rating on Verifone as a result of the continued operating success of the company's cost savings plans and our expectation that the cost restructuring phase will not severely disrupt revenues. - We also affirmed our 'B' issue level-rating and '3' recovery rating to the upsized first-lien credit facility and our 'B-' issue-level rating and '5' recovery rating to the second-lien credit facility. We will withdraw our issue level ratings on the second-lien credit...

Research Update