Moody's rates new Canyon Valor loans B2

Moody's Investors Service said it assigned a B2 corporate family rating to Canyon Valor Cos., Inc., along with its B2-PD probability of default rating, B2 on its new first-lien credit facilities and SGL-2 speculative grade liquidity rating.

Moody's also downgraded Canyon Valor's existing first-lien credit facilities to B2 from B1, reflecting the repayment of borrowings under the second-lien credit facility.

The outlook also was changed to positive from stable.

Canyon Cos. SARL recently merged with Capital Acquisition Corp. III and became a publicly traded entity known as Cision Ltd., Moody's explained.

Simultaneously, Canyon Valor, which became a wholly owned subsidiary of Cision upon the merger, paid down $294 million of its existing $370 million second-lien term loan, using a $325 million cash investment from Capital Acquisition, the agency said.

Canyon Valor's existing first-lien credit facilities also were downgraded to B2 from B1, reflecting removal of a significant amount of loss absorption support provided by the second-lien term loan, Moody's said.

Canyon Valor is now planning to refinance its capital structure with a new first-lien term loan and revolving credit facilities, the agency said.

Canyon Valor's B2 corporate family rating reflects high pro forma debt-to-EBITDA ratio leverage of about 6.3x as March 31, 2017, Moody's said.

The ratings also consider the company's leading positions in the public relations software market and database markets, the agency said.

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