Moody’s rates Match notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the $500 million of proposed 10-year senior notes to be issued by Match Group Holdings II, LLC, a wholly owned second-tier holding company of Match Group, Inc.

Moody's withdrew the rating on the $400 million incremental delayed-draw term loan A due 2022 of Match Group Holdings II, which was terminated on June 18.

The Ba1 ratings on the senior secured bank credit facilities and Ba3 ratings on the senior notes issued by Match Group Holdings II, together with Match's Ba2 corporate family rating, Ba2-PD probability of default rating and stable outlook are unchanged.

Net proceeds together with a concurrent registered direct offering and the unwinding of certain note hedge and warrant transactions will be used to repurchase a portion of the $517.5 million outstanding exchangeable senior notes due Oct. 1, 2022 and pay the associated premium and accrued interest, which totals an estimated $1.4 billion.

The new senior notes will rank pari passu with the existing senior notes.

“Moody's expects that the refinancing transaction will be leverage neutral since Match's total debt quantum and financial leverage will remain unchanged with pro forma total debt to EBITDA staying at roughly 4.6x (as calculated by Moody's at June 30,” the agency said in a news release.

“Moody's views the transaction favorably given the expected extension of the 2022 debt maturity.”

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