Moody’s rates DigitalGlobe facilities Ba3

Moody's Investors Service said it assigned a Ba3 rating to DigitalGlobe, Inc.'s proposed senior secured credit facilities, consisting of a $200 million five-year revolving credit facility and $1.275 billion seven-year term loan B.

Concurrently, the agency affirmed DigitalGlobe's Ba3 corporate family rating and SGL-2 speculative grade liquidity rating.

The probability of default rating was downgraded to B1-PD from Ba3-PD based on the agency’s use of a 65% mean family recovery rate for issuers with one class of debt in the capital structure, in accordance with Moody's Loss Given Default (LGD) Methodology.

The outlook is stable.

Moody's said it views the transaction favorably due to the extension of the debt maturity structure. The new revolver will replace the current $150 million revolver maturing January 2018.

Proceeds from the new term loan plus cash will be used to prepay the existing $531 million outstanding term loan B due January 2020, $600 million 5¼% senior unsecured notes due February 2021 via a tender offer, $110 million of revolver borrowings (used to partially finance the Radiant Group acquisition) and pay estimated fees and expenses.

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