Research Update: VeriFone Systems Inc. Downgraded To 'B' On Increased Leverage And Risk; Outlook Stable; New Debt Rated - S&P Global Ratings’ Credit Research

Research Update: VeriFone Systems Inc. Downgraded To 'B' On Increased Leverage And Risk; Outlook Stable; New Debt Rated

Research Update: VeriFone Systems Inc. Downgraded To 'B' On Increased Leverage And Risk; Outlook Stable; New Debt Rated - S&P Global Ratings’ Credit Research
Research Update: VeriFone Systems Inc. Downgraded To 'B' On Increased Leverage And Risk; Outlook Stable; New Debt Rated
Published Jul 25, 2018
9 pages (3149 words) — Published Jul 25, 2018
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Global payment solutions provider VeriFone Systems Inc. is expected to close its leveraged buyout by Francisco Partners Management LLC in the third quarter of 2018. The transaction will result in pro forma adjusted debt to EBITDA in the mid-7x area. We are lowering our issuer credit rating on the company to 'B' from 'BB' as a result of the increased financial leverage and execution risks surrounding planned cost savings and new product rollout. We are also assigning our 'B' issue-level rating and '3' recovery rating to the planned first-lien credit facility and our 'B-' issue-level rating and '5' recovery rating to the planned second-lien credit facility. The stable outlook reflects our expectation of the high starting leverage and expectations of

  
Brief Excerpt:

...+ Global payment solutions provider VeriFone Systems Inc. is expected to close its leveraged buyout by Francisco Partners Management LLC in the third quarter of 2018. The transaction will result in pro forma adjusted debt to EBITDA in the mid-7x area. + We are lowering our issuer credit rating on the company to 'B' from '##' as a result of the increased financial leverage and execution risks surrounding planned cost savings and new product rollout. + We are also assigning our 'B' issue-level rating and '3' recovery rating to the planned first-lien credit facility and our 'B-' issue-level rating and '5' recovery rating to the planned second-lien credit facility. + The stable outlook reflects our expectation of the high starting leverage and expectations of deleveraging from achievement of planned cost savings....

  
Report Type:

Research Update

Ticker
PAY
Issuer
VeriFone Systems Inc.
GICS
Electronic Equipment Manufacturers (45203010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: VeriFone Systems Inc. Downgraded To 'B' On Increased Leverage And Risk; Outlook Stable; New Debt Rated" Jul 25, 2018. Alacra Store. May 04, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-VeriFone-Systems-Inc-Downgraded-To-B-On-Increased-Leverage-And-Risk-Outlook-Stable-New-Debt-Rated-2077312>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: VeriFone Systems Inc. Downgraded To 'B' On Increased Leverage And Risk; Outlook Stable; New Debt Rated Jul 25, 2018. New York, NY: Alacra Store. Retrieved May 04, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-VeriFone-Systems-Inc-Downgraded-To-B-On-Increased-Leverage-And-Risk-Outlook-Stable-New-Debt-Rated-2077312>
  
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