Fitch gives Conga B+, loans BB

Fitch Ratings said it assigned Project Everest Ultimate Parent, LLC (Conga) and Apttus Corp. a first-time B+ long-term issuer default rating. Also, Fitch gave a BB/RR2 rating to Apttus' $50 million secured revolving credit facility and $565 million first-lien secured term loan.

“Conga's B+ long-term IDR is supported by recurring sales with high retention and strong cash-generative qualities. The IDR also reflects the company's higher-quality customer base, with the majority of sales coming from larger enterprises. As a private equity-owned entity, financial leverage is likely to remain at moderate levels as shareholders prioritize ROE optimization, limiting debt reduction. Fitch expects Conga to delever modestly, mainly through EBITDA growth, and to maintain leverage within a range consistent with B+ rated software peers,” the agency said in a press release.

The proceeds will be used to refinance the company's credit facility.

The outlook is stable.

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