S&P cuts Attachmate to stable

Standard & Poor's said it revised the outlook on Attachmate Corp. to stable from positive.

The agency also affirmed all existing ratings on the company, including its BB- rating on the company's $300 million first-lien term loan add-on.

The 1 recovery rating remained unchanged and indicates 90% to 100% expected recovery in a default.

The company also has a $275 million second-lien term loan and a $100 million second-lien term loan add-on that is not rated.

The proceeds from the first- and second-lien term loan add-ons, along with about $243 million of existing cash, will be used to pay dividends of $609 million to the sponsors, S&P said.

The ratings reflect an expectation that Attachmate will generate good free operating cash flow, the agency said.

The ratings also consider its aggressive financial policy with the proposed dividend recapitalization within a year of a transformative acquisition, S&P said.

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