Moody’s rates Project Sunshine loan B2

Moody's Investors Service said it assigned a provisional B2 senior secured rating to Project Sunshine IV Pty. Ltd.'s proposed $400 million term loan facility.

The outlook is stable.

Project Sunshine is the 100% owner of Sensis Pty. Ltd., which is Australia's leading provider of telephone directory services.

Proceeds will be used to repay the $315 million term loan B issued by the company in February 2014 (which was subsequently reduced to around $200 million from operating cash flow), fund a distribution to the equity holders and pay related fees and expenses.

"The ratings primarily reflect the weak operating profile and structural decline of the industry sector in which Sensis operates, namely print and digital directories," Moody's analyst Saranga Ranasinghe said in a news release.

"The ratings also incorporate the intensifying threat from digital alternatives and other rapidly expanding information and social networking sites. We expect Sensis' customer base and revenue to decline materially over the rating horizon, in-line with current rates of decline or slightly faster."

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