S&P rates Veracode loan B

S&P said it rated Veracode Parent LP’s planned first-lien $75 million revolving credit facility maturing 2027 and $580 million first-lien term loan maturing 2029 B with 2 recovery ratings. The loans will be borrowed by Mitnick Corp. Purchaser, Inc.

TA Associates Management LP agreed to acquire a majority stake in Veracode Parent from sponsor, Thoma Bravo, LP. TA will use the first-lien term loan and an unrated second-lien term loan due 2030 to help finance the deal.

The agency affirmed Veracode’s B- issuer rating. “Our B- rating reflects Veracode's high S&P Global Ratings-adjusted leverage, which we forecast to be about 8.3x at close and remain above 7x for at least the next 18 months. The $500 million of incremental debt from this transaction will also pressure cash generation, with cash interest expense about $30 million higher per year,” S&P said in a press release.

The outlook is stable.

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