Research Update: VeriFone Systems Outlook Revised To Positive From Negative, Ratings Affirmed; Extended Debt Rated 'CCC+' (Recovery: '3')

In March 2025, VeriFone Systems Inc. completed an amendment and extension transaction to defer its debt maturities to 2028 from 2025 and received a $235 million new equity infusion, which we view as a credit-positive development. We expect the company will improve its credit profile over the next 12 months, largely due to its already actioned expense reductions, which will help it expand its EBITDA and improve its free operating cash flow (FOCF) prospects. S&P Global Ratings revised its outlook on VeriFone to positive from negative and affirmed all of its ratings, including the 'CCC+' issuer credit rating. At the same time, we assigned our 'CCC+' issue-level rating and '3' recovery rating to VeriFone's extended revolver and term loan due

...In March 2025, VeriFone Systems Inc. completed an amendment and extension transaction to defer its debt maturities to 2028 from 2025 and received a $235 million new equity infusion, which we view as a credit-positive development. We expect the company will improve its credit profile over the next 12 months, largely due to its already actioned expense reductions, which will help it expand its EBITDA and improve its free operating cash flow (FOCF) prospects....

Research Update