Moody’s rates Autodata facilities B2, Caa1

Moody's Investors Service said it assigned a B3 corporate family rating, a B2-PD probability of default rating and a stable outlook to Autodata, Inc. which, along with related entity, Autodata Solutions, Inc., is a co-borrower under credit facilities comprised of a $285 million senior secured bank credit facility (in turn comprised of a $25 million five-year revolving credit facility and a $260 million seven-year first-lien term loan), and a $100 million eight-year second-lien term loan.

As part of the same action, the agency assigned B2 (LGD4) ratings to both the revolving credit facility and first-lien term loan and a Caa1 (LGD6) rating to the second-lien term loan.

Loan proceeds fund a distribution to the company's financial sponsor owners.

“Autodata's (B3 stable) credit profile is adversely affected by elevated leverage in excess of 7.5x along with elevated event risks given the company's private equity ownership, significant revenue concentration, very modest scale, limited financial and operational reporting, and participation in an industry which lacks publicly available information,” Moody’s said in a news release.

“Autodata's credit profile is bolstered by good liquidity, free cash flow and a lack of near term debt maturities which provide modest de-levering potential, a vast data library that is organized to enable Autodata's suite of automobile sales and marketing software applications that underpins revenue prospects, an experienced management team with a solid track record, plus a growth opportunity as auto sales increasingly move on-net.”

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