S&P rates Imprivata, loans B

S&P said it assigned B ratings to Imprivata Inc. and its planned $755 million first-lien senior secured credit facility, consisting of an undrawn $40 million revolver and a $715 million term loan B. The recovery rating on the loans is 3.

“Imprivata’s rating reflects the company’s highly leveraged capital structure, limited scale and solutions narrowly focused on the medical end market. We estimate S&P Global Ratings-adjusted pro forma leverage (incorporating our treatment of the firm’s class A equity as debt) will rise to 9.4x following the acquisition of the target and dividend recapitalization transaction, which is expected to close by December 2020,” S&P said in a press release.

Loan proceeds will be used for an acquisition, pay a $422 million dividend and repay about $61 million of debt.

The outlook is stable.

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