Moody’s: MediaOcean CFR B3; loans B2, Caa2

Moody's Investors Service said it assigned MediaOcean LLC a B3 corporate family rating, B3-PD probability of default rating, a B2 rating on its proposed first-lien credit facilities and a Caa2 rating on its proposed second-lien term loan.

The outlook is stable.

The action follows the pending acquisition of a majority stake in the company by affiliates of Vista Equity Partners for an enterprise value of about $720 million (net of fees) with proceeds of the debt financing to be used to partially fund the purchase transaction.

Moody’s said the B3 corporate family rating reflects the credit risks associated with MediaOcean's relatively small revenue base and high debt to EBITDA leverage while also considering the company's customer concentration and exposure to the growing, but cyclical advertising market, which has been susceptible to economic downturns.

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