Severin Acquisition, LLC -- Moodys places PowerSchools B3 CFR and facility ratings under review for upgrade following IPO plans
Summary
If, however, only a minimum amount of proceeds is raised such that leverage remains at roughly 6.5 times or higher, it is possible that Moodys would confirm PowerSchools B3 CFR upon completion of the review. However, the ratings could be downgraded if: leverage fails to remain below 8.0 times over the next 12 to 18 months; if liquidity deteriorates, reflective, perhaps, of an aggressive acquisition strategy, or; if planned synergy execution fails to translate into improved EBITDA and positive free cash.With Moodys-expected 2021 revenues of about $600 million, pro-forma for the early 2021 acquisition of certain business lines of Hobsons, PowerSchool provides SIS, ERP and LMS software that facilitates the management, operations, communications, and teaching functionality for kindergarten through twelfth-grade educational institutions largely in North America. Vista Equity Partners acquired PowerSchools core SIS business from Pearson Plc in 2015, and has executed many acquisitions since then.The principal methodology used in these ratings was Software Industry published in August 2018 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1130740. Further information on the UK endorsement status and on the Moodys office that issued the credit rating is available on www.moodys.com.REFERENCES/CITATIONS[1] United States Securities and Exchange Commission, Form S-1 Registration Statement. Kevin Stuebe Vice President - Senior Analyst Corporate Finance Group Moodys Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A.