Moody's assigns B2 to PowerSchool loans

Moody's Investors Service said it assigned B2 ratings to Severin Acquisition, LLC's (PowerSchool), planned amended and extended backed senior secured first-lien credit facilities, consisting of a new backed first-lien term loan due August 2027 and backed first-lien revolver due May 2027.

The agency’s other ratings of PowerSchool are unaffected, including the company's B2 corporate family rating, B2-PD probability of default rating and SGL-2 speculative grade liquidity rating.

The proceeds from the new $840 million term loan and balance sheet cash will be used to repay the $840 million t outstanding under the term loan agreement, dated as of Aug. 1, 2018, including the $100 million incremental facility raised in July, and pay transaction fees and expenses.

“The proposed transaction extends maturities of its senior secured first-lien revolving credit facility and senior secured first-lien term loan by two years, while also upsizing its revolving credit facility to $350 million-400 million from $289 million. The existing B2 ratings on the company's existing senior secured term loan and revolver are unaffected and will be withdrawn once the refinancing transaction is completed,” the agency said in a press release.

The outlook is stable.

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