Moody's rates Audatex loans B1, may upgrade company

Moody's Investors Service said it placed Audatex Holdings, LLC's B2 corporate family and probability-of-default ratings on review for possible upgrade and assigned provisional B1 (LGD3, 49%) ratings to Audatex Holdings IV BV's proposed $25 million equivalent euro-denominated first-lien revolving credit facility due 2012 and $357.5 million equivalent euro-denominated first lien term loan due 2013 and Audatex North America, Inc.'s proposed $25 million first-lien revolving credit facility due 2012 and $250 million first-lien term loan due 2013.

The agency also affirmed Audatex Holdings IV's existing $25 million equivalent first-lien revolving credit facility due 2012 and $287 million equivalent first-lien term loan due 2013 at Ba3 (LGD2, 29%) and $216 million equivalent second-lien term loan due 2013 at Caa1 (LGD5, 78%) and Audatex North America's existing $25 million first-lien revolving credit facility due 2012 and a $239 million equivalent first-lien term loan due 2013 at Ba3 (LGD2, 29%).

Audatex's parent holding company, Solera Holdings LLC, plans to hold an initial public offering of its common stock, and Audatex expects to use the proceeds from the new term loans and funds contributed to the company in connection with the IPO to repay its existing first-lien, second-lien and subordinated debt.

The agency said that if the IPO and refinancing are completed and debt reduction of at least $230 million is achieved, it expects to upgrade the corporate family rating to B1.

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