Moody’s rates Voyage Digital, loan Ba3

Moody’s Investors Service said it assigned Ba3 ratings to Voyage Digital (NZ) Ltd. and its planned NZ$1.35 billion first-lien term loan facility.

“VDNZ's rating reflects that the merger of 2degrees and Orcon will create the third-largest integrated player in the New Zealand telecommunications market, with the ability to offer a full suite of products to retail, commercial, wholesale and government customers, in a country with a favorable regulatory environment,” Moody’s said in a press release.

Pro forma leverage for VDNZ is expected to be 5.7x in fiscal 2022, but the agency said it sees the company pushing leverage to around 4.9x in fiscal 2023.

The proceeds will be used to finance the acquisition of Two Degrees Group Ltd. (2degrees) and its subsidiaries, repay 2degrees’ debt, effect a cash distribution to Vocus Group Holdings Pty Ltd. to repay the debt at Voyage Australia Pty Ltd., pay related fees and transaction expenses and finance working capital needs and other general corporate purposes.

The outlook is stable.

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