Moody’s rates Global Eagle loans Ba3, B3

Moody's Investors Service said it assigned a B1 corporate family rating, B1-PD probability of default rating and SGL-1 speculative grade liquidity rating to Global Eagle Entertainment, Inc.

Moody's also said it assigned a Ba3 (LGD 3) rating to the company's proposed senior secured first-lien credit facility, which consists of an $85 million senior secured revolver and $460 million term loan.

The agency also assigned a B3 (LGD 5) rating to the company’s proposed $125 million senior secured second-lien term loan.

The outlook is stable.

On July 27, 2016, Global Eagle completed its previously announced acquisition of Emerging Markets Communications, LLC, Moody’s explained.

The use of proceeds from the borrowings will be used to refinance the existing senior secured credit facilities of the acquired company, along with working capital, capital expenditures, acquisitions, investments and general corporate purposes, the agency said.

The ratings reflect the company’s market position, diverse customer base and contracted recurring revenues and supplier relationships, as well as its valuable network assets and patented technologies, Moody’s said.

The ratings also consider Global Eagle’s strong liquidity, seasoned and proven management team and the company's history of successfully integrating acquisitions, the agency said.

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