Tear Sheet: Ellucian Holdings Inc.

In the first six months of the year Ellucian?s revenues grew by 6.6%, supported by a ramp-up in software as a services (SaaS) modernizations as well as new enterprise resource planning (ERP) logo wins. S&P Global Ratings-adjusted EBITDA margins were stable in the high-20% area during the first six months of 2024 as revenue growth was partially offset by continued investment in market expansion and product/service improvement initiatives. Additionally, negative free operating cash flow (FOCF) in the first half of the year (due to invoicing seasonality) was partially offset by the company's interest rate cap, which provided about $22 million of cash receipts net of premium payments. We forecast total revenue growth near 6% for fiscal 2024 underpinned by subscription

...Rating Component Scores Foreign currency issuer credit rating B-/Stable/-- Local currency issuer credit rating B-/Stable/-- Business risk Fair Country risk Very Low Industry risk Intermediate Competitive position Fair Financial risk Highly Leveraged Cash flow/leverage Highly Leveraged Anchor b Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy FS-6 (no impact) Liquidity Adequate (no impact) Management and governance Moderately Negative (no impact) Comparable rating analysis Negative (-1 notch) Stand-alone credit profile b-...

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