Moody’s rates Avatar B3, facilities B2

Moody's Investors Service said it assigned Avatar Purchaser, Inc., a subsidiary of EAB, a corporate family rating of B3 and a probability of default rating of B3-PD.

Concurrently, the agency assigned a B2 rating to Avatar's proposed senior secured first-lien credit facilities, comprised of a $540 million term loan and an undrawn $70 million revolver.

The proposed $260 million second-lien term loan is unrated.

Moody’s said the action follows the pending acquisition of EAB by affiliates of Vista Equity Partners from Advisory Board Co. for an enterprise value of nearly $1.6 billion (including fees) with proceeds of the debt financing to be used to partially fund the purchase transaction.

The outlook is positive.

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