Moody’s rates Victra loan B2

Moody’s Investors Service said it rated the planned $600 million first-lien term loan LSF9 Atlantis Holdings LLC (Victra) will borrow B2. Concurrently the agency affirmed Victra’s B2 corporate family rating, B2-PD probability of default rating and B2 senior secured notes rating.

Victra plans to use the proceeds to help fund its acquisition of Go Wireless. Moody’s said it plans to withdraw Go Wireless’ ratings after the acquisition is completed and its debt repaid.

“Although the transaction increases Victra's leverage from 4.8x to 5.4x on a pro forma basis for the twelve months ended Sept. 30, 2021, Moody's expects it to reduce below 5x within the next year as it realizes cost saving synergies from overlapping store closures, corporate headcount reduction and sourcing. The combined business enhances the mutually-beneficial and symbiotic relationship between Victra and Verizon and further cements Victra's position as the largest Verizon independent retailer as it expects to operate over 1,300 stores following the closure of overlapping stores,” the agency said in a press release.

The outlook remains stable.

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