Moody's rates Merlin facilities B1

Moody's Investors Service said it assigned a B1 instrument rating, with a loss given default assessment of LGD3 (33%), to Merlin Entertainment Sarl's new credit facilities amounting to a GBP-equivalent of around £1.387 billion (consisting of $602.2 million; £455.2 million; €500 million and A$185 million) maturing in 2019.

Concurrently, Moody's assigned a B1 instrument rating with LGD3 (33%) to Merlin's £150 million revolving credit facility maturing in 2018.

These instruments are borrowed at MEG Luxembourg 2 and 3 Sarl and drawn at various intermediate holding companies within the group.

Merlin's B1 corporate family rating and the B2-PD probability of default rating, as well as the outlook on all ratings, remain unchanged.

The term loans and revolving credit facility are rated B1, at the same level as the corporate family rating, in light of the terms of the refinancing and its guarantee, covenant and security package.

Under the terms of the senior facilities, the guarantors must represent at least 80% of consolidated group EBITDA and assets (at fiscal-year end 2012, the actual numbers were about 88% and 86%; these declined versus 95% and 92% fiscal-year end 2011, but are expected to rise again as the acquired Australian assets accede to the guarantors).

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