S&P rates Presidio notes B, CCC+

S&P said it assigned a B rating with a 3 recovery rating to Presidio Holdings Inc.’s proposed $400 million senior secured notes. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in the event of a default.

Concurrently, S&P assigned a CCC+ issue-level rating and 6 recovery rating to the company’s proposed $400 million senior unsecured notes. The 6 recovery rating indicates S&P’s expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a default.

Presidio will be the issuer of both issues. The company expects to use the proceeds combined with $625 million of its previously announced senior secured term loan issuance to repay the $1.425 billion bridge loan financing that was put in place to fund its leveraged buyout by BC Partners.

“Our B issuer credit rating on Presidio is unaffected by the issuance. The stable outlook reflects our forecast that the company will likely increase its revenue by the low- to mid-single-digit percent area over the next two years supported by its positioning in cloud and cyber security solutions,” said S&P in a press release.

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