Moody’s rates Dealogic, loans B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to I-Logic Technologies Bidco Ltd. (Dealogic).

Concurrently, the agency assigned a B3 rating to each of the proposed $20 million first-lien revolver and dollar-equivalent $660 million first-lien term loans (which will be denominated in both dollar and euro tranches).

The outlook is stable.

The new loans are being issued as part of a transaction whereby ION Investment Group is acquiring a majority stake in Dealogic in a transaction valued at more than $1.2 billion. In addition to the $660 million term loan, ION will be financing the acquisition with $400 million of new cash equity. Carlyle Group and the management team will also have ownership stakes.

The transaction is expected to close in late December.

Moody’s said the B3 corporate family rating is constrained by elevated financial risk arising from very high leverage and aggressive financial policies under private ownership which significantly pressures the credit profile and leaves little cushion if execution is challenged.

Pro forma for the transaction, debt-to-EBITDA will measure over 10 times before falling to just over 9 times by the end of 2018 and approaching the mid-8 times area during 2019.

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