Moody’s: Mergermarket facilities B2, Caa2; view stable

Moody's Investors Service said it affirmed Mergermarket Midco 2 Ltd.’s B3 corporate family rating and B3-PD probability of default rating.

Concurrently, the agency assigned provisional B2 ratings to the new £430 million-equivalent first-lien credit facilities due 2024 and a provisional Caa2 rating to the new £70 million-equivalent second-lien term loan due 2025, all at Mergermarket Bidco Ltd.

The first-lien credit facilities comprise a £275 million term loan B1, a £105 million equivalent term loan B2 and a £50 million revolving credit facility.

The outlook was revised to stable.

Net proceeds from the new term loans will be used to fully repay the existing debt capital structure and fund a distribution to shareholders of about £119 million. At transaction close, the company is expected to have £10 million of cash on balance sheet and full access to the new £50 million revolver. The ratings on the outstanding debt will be withdrawn upon completion of the transaction.

Moody’s said the outlook change reflects the increase in the Moody's-adjusted debt/EBITDA to 7.2 times from 6 times following the refinancing transaction and distribution to shareholders.

The agency views the B3 corporate family rating as weakly positioned but expects further EBITDA growth to support deleveraging below 7 times in the next 12 months.

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