S&P ups SurveyMonkey, rates loan B+

S&P said it raised its issuer credit rating on SurveyMonkey Inc. to B from B- and removed the rating from CreditWatch with positive implications. The outlook is stable.

S&P also assigned a B+ issue-level and 2 recovery ratings to SurveyMonkey's proposed senior secured credit facility, which consists of a $75 million revolving credit facility due 2023 and a $220 million term loan due 2025. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%; rounded estimate: 70%) of principal and interest in the event of a payment default.

“The upgrade reflects SurveyMonkey's improved debt leverage and free operating cash flow (FOCF) generation as a result of the expected $100 million debt reduction with the $210 million net proceeds from the IPO and private offering,” S&P said in a news release.

“Additionally, it reflects our expectation of stable operating performance, with high-single-digit to low-double-digit organic revenue growth over the next two years due to subscriber growth, upselling, and cross-selling solutions.”

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