Moody’s rates Deerfield facilities B2

Moody's Investors Service said it assigned B2 corporate family rating to Deerfield Holdings Corp., a newly formed holding corporation that intends to obtain financing to fund the purchase of Duff & Phelps Corp. by funds advised by Permira Advisers LLC for $1.75 billion.

The agency also assigned B2 ratings to Deerfield's proposed $1.02 billion senior secured first-lien term loan and to its proposed $100 million revolving credit facility.

The ratings of Duff & Phelps will be withdrawn after the closing of the proposed transaction.

The outlook is negative.

Moody’s said the B2 rating follows the announced acquisition. Deerfield plans to borrow $1.02 billion and refinance the Duff & Phelps debt.

“The transaction will also be funded through equity contributions by Permira and Duff & Phelps management team, which will continue to lead the firm in their current roles,” Moody’s said in a news release.

“Following this transaction, Deerfield's debt outstanding of $1,020 million would be around $170 million higher compared to Duff & Phelps' current outstanding debt balance. The increase comes on top of an incremental $105 million which Duff & Phelps borrowed in October 2017 to help finance a dividend.”

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