Sophia L.P.'s (Ellucian) Proposed First-Lien Debt Rated 'B'; Ratings Unchanged On $298 Million Dividend Recapitalization

SAN FRANCISCO (S&P Global Ratings) Sept. 17, 2020--S&P Global Ratings today assigned its 'B' issue-level and '2' recovery ratings to Reston, Va.-based Sophia L.P.'s (doing business as Ellucian) proposed $1.6 billion senior secured first-lien term loan due 2027 and $150 million revolving credit facility due 2025. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a default. The proposed $540 million senior secured second-lien term loan due 2028 will be privately placed and unrated. All of our other ratings on Sophia are unchanged. Ellucian plans to use the proceeds and $72 million of cash to fund a $298 million dividend to shareholders and refinance its outstanding debt ($1.852 billion). The dividend

...September 17, 2020 SAN FRANCISCO (S&P Global Ratings) Sept. 17, 2020--S&P Global Ratings today assigned its 'B' issue-level and '2' recovery ratings to Reston, Va.-based Sophia L.P.'s (doing business as Ellucian) proposed $1.6 billion senior secured first-lien term loan due 2027 and $150 million revolving credit facility due 2025. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a default. The proposed $540 million senior secured second-lien term loan due 2028 will be privately placed and unrated. All of our other ratings on Sophia are unchanged. Ellucian plans to use the proceeds and $72 million of cash to fund a $298 million dividend to shareholders and refinance its outstanding debt ($1.852 billion). The dividend is the first under its current ownership. The issuance improves its debt maturity profile by extending the maturity of its outstanding debt to 2027 and 2028 from 2022 ($1.362 billion) and 2023 ($540 million)....

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