Fitch: SunGard Data Systems Inc.'s 'B+' IDR Unaffected by Proposed Acquisition of GL TRADE.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- The ratings of SunGard Data Systems, Inc. (SunGard) are unaffected by the announcement that the company will acquire the Paris- and London-based financial software solutions company, GL TRADE for approximately Eur400 million (approximately US$624 million at current exchange rates), according to Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . Subject to shareholder and regulatory approvals, SunGard will acquire a 64.51% stake of the company from several major shareholders in the fourth quarter of 2008, and subsequently launch an all-cash tender offer for the remainder of the shares. The current ratings and Outlook incorporate Fitch's expectation for ongoing acquisition activity at SunGard, given maturing organic growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. for certain of its businesses. Fitch's expectations include debt-financed acquisitions that could result in leverage (total debt/LTM [latest 12 months] operating EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) above Fitch's 5-5.5 times (x) target range on a short-term basis, with the anticipation that EBITDA growth rather than material debt reduction would drive subsequent deleveraging. Leverage is expected to increase modestly for this transaction although Fitch estimates that SunGard will remain below 6x leverage for the short term. Fitch currently rates SunGard as follows, with a Stable Rating Outlook: --Issuer Default Rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) 'B+'; --$1 billion senior secured revolving credit facility due 2011 'BB+/RR1'; --$4.3 billion senior secured term loan due 2013 'BB+/RR1'; --$250 million 3.75% senior notes due 2009 'B+/RR4'; --$250 million 4.875% senior notes due 2014 'B+/RR4'; --$1.6 billion senior unsecured notes due 2013 'B/RR5'; --$1 billion 10.25% senior subordinated notes due 2015 'B-/RR6'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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