Our forecast calls for continued revenue growth, slight margin expansion, and debt repayment that should drive leverage down to around 8x over the next 12 months. Balboa's $329.58 million in balance sheet cash and our forecast for about $135 million in free cash flow far exceeds its fixed charges, offering significant covenant flexibility. Balboa has incremental revenue visibility after 29% year-over-year growth in its recurring maintenance and subscription revenue to approximately 68% of total revenues. The stable outlook reflects S&P Global Ratings' belief that Balboa Intermediate Holdings LLC's operating performance will benefit from a higher proportion of recurring revenues, that profitability and margins will remain stable at around, and the company can generate at least $125 million free cash flow
