Moody’s said that this is the second dividend recapitalisation of the company in the past six month and revised its ratings outlook to negative from stable, while reiterating its B2corporate rating. The company is currently looking for loans of over $500m to fund the dividend, said Thomson Reuters Loan Pricing Corp.
The latest dividend recapitalisation will take Thoma’s returns to three times its initial investment, according to Moody’s.
“The ratings outlook is negative reflecting the limited flexibility the company has in the rating category given their very high leverage, aggressive financial policies and acquisition appetite,” the agency said in a statement.
It added that the ratings could be downgraded if performance deteriorates or if leverage is not on track to get below 6x over the near term.
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