Moody's gives DRI loans B2, Caa2

Moody's Investors Service said it gave DRI Holding Inc. (Digital Room) a B3 corporate family rating and a B3-PD probability of default rating. Concurrently, the agency assigned B2 ratings to the company's expected $50 million first-lien senior secured revolving credit facility and $340 million first-lien senior secured term loan. Moody's also gave a Caa2 rating to the planned $140 million second-lien senior secured term loan.

“Digital Room's B3 CFR reflects the company's high financial leverage of approximately 7.2x (Moody's adjusted for operating leases) pro forma for the last 12 months ending Sept. 30, 2021, as well as the company's relatively small scale, exposure to economic cyclicality in the small and medium-sized business (SMB) segment and potential pressures from larger competitors in the online printing marketplace,” the agency said in a press release.

Sycamore Partners will use the loans to acquire Digital Room and refinance its credit facilities.

The outlook is stable.

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