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Northgate Software · NGS
DEMO DATAUNDERWRITING ASSUMPTIONHOLDDEMO DATA — fictional company with illustrative numbers.
Mission-critical workflow software for mid-market logistics operators; ~92% recurring revenue.
Recommendation
HOLD
2 core test(s) failed
Credit score
90 / 100
Low
Base IRR
8.1%
vs hurdle 12.0%
Downside IRR
4.9%
performing
Severe recovery
100%
IRR -2.4%
Net leverage
1.8x
FY2025A
EBITDA / interest
5.62x
FY2025A
Overview
| Sector / industry | Software / Vertical SaaS |
| Headquarters | Austin, TX |
| Revenue (FY2025A) | $820M |
| EBITDA (FY2025A) | $254M |
| Total debt (face value) | $600M |
| Cash | $140M |
| Net debt | $460M |
| Asset / collateral base | $700M |
| Enterprise value (assumed multiple) | $3.6B |
Investment thesis UNDERWRITING ASSUMPTION
High-quality, low-leverage credit. Debt is well covered in every scenario, but pricing near par leaves little spread for the risk taken; we would own the notes only on a spread-widening event.
| Instrument | Senior Unsecured Notes |
| Face value / purchase price / cash investment | $100M / 96.0 / $96.5M UNDERWRITING ASSUMPTION |
| Current yield · yield to maturity | 7.0% · 7.7% |
Key protections
- Net leverage <2x with FCF/debt above 10%
- Sticky recurring revenue with high gross retention
Key risks
- Spread compression leaves little return cushion
- AI-driven pricing pressure on workflow tools
- Sponsor-led dividend recap
Key catalysts
- Fiscal-year renewal cohort data
- Potential refinancing at tighter spreads
Data-quality notes
- All figures are fictional and illustrative.
Sources & data lineage (3)
| Source | Document | Data type | Period | Accession | Doc date | Retrieved | Class |
|---|---|---|---|---|---|---|---|
| CreditIQ demo dataset | Northgate Software — illustrative financial statements FY2022–FY2025 | Income statement / cash flow | FY2022–FY2025 | — | 2026-03-31 | 2026-03-31 | DEMO DATA |
| CreditIQ demo dataset | Northgate Software — illustrative capital structure & covenants | Debt schedule | As of 2026-03-31 | — | 2026-03-31 | 2026-03-31 | DEMO DATA |
| CreditIQ demo dataset | Illustrative indicative bid marks (% of par) | Market price | 2026-03-31 | — | 2026-03-31 | 2026-03-31 | DEMO DATA |