Moody’s gives B3 to Yell, notes

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Owl Finance Ltd. (Yell), the indirect 100% shareholder of Yell Ltd., a leading provider of digital marketing services to small and medium enterprises ("SMEs") in the U.K.

Concurrently, the agency assigned B3 ratings to the £225 million senior secured notes due 2023 issued by Yell Bondco plc.

The outlook is stable.

Proceeds will be used to refinance existing debt, make a contribution to the company's pension fund and pay related expenses.

"Yell is a leading digital market service provider for UK local businesses, operating a low capex model with good cash conversion that helps to mitigate high opening leverage of 4.1x and the relatively small scale of this niche player," Colin Vittery, Moody's vice president, senior credit officer and lead analyst for Yell, said in a news release.

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