Moody’s rates Global Eagle B3, facility B1

Moody’s Investors Service said it assigned a B3 corporate family rating, a B3-PD probability of default rating and an SGL-2 speculative grade liquidity rating to Global Eagle Entertainment, Inc.

The agency also assigned a B1 (LGD3) rating to the company's existing senior secured first-lien credit facility that consists of an $85 million senior secured revolver due 2022 and $500 million term loan due 2023.

The outlook is stable.

Moody’s said the corporate family rating reflects the company’s diverse customer base, contracted recurring revenue, solid market positions and strong supplier relationships.

Valuable network assets and patented technologies further support Global Eagle's business model, the agency said.

These strengths are offset by small scale, high leverage, historically weak cash flow performance and auditor-identified and still unremedied material weaknesses in financial reporting internal controls, Moody’s said.

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