Moody's lowers Hyland Software view to negative

Moody's Investors Service said it affirmed Hyland Software, Inc.'s corporate family rating at B2 and probability of default ratings at B2-PD, but revised the outlook to negative after news of its proposed dividend recapitalization.

Moody's also said it affirmed the B1 rating on its upsized first-lien debt and the Caa1 rating on its upsized second-lien debt.

The new loans, along with cash on the balance sheet, will be used to finance a dividend of about $450 million to shareholders, the agency said.

The outlook revision reflects the very high leverage as a result of the dividend while the company is still turning around the OneContent and Perceptive acquisitions, Moody's said.

The ratings are bolstered by Hyland's history of successfully de-leveraging after dividends and acquisitions, the agency said.

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