Standard & Poor's Ratings Services is updating its recovery analysis on network security provider SonicWALL Inc. following the upgrade of the company to 'B+' from 'B'. We raised the issue-level ratings on the company's existing facilities in conjunction with the upgrade while keeping the recovery ratings unchanged. Our simulated default scenario contemplates a default occurring in 2015, reflecting heightened competition leading to increased pricing pressure, lagging product development, or major services failure. The company has made meaningful prepayments on the first-lien term loan, which reduced the outstanding amount to $95 million. In our analysis, we assumed no more scheduled amortizations because of these prepayments. The revolver and first-lien term loan are guaranteed by PSM Holdings II Inc. (Holdings), the company's...
Companies mentioned in this report are: SonicWALL Inc.
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