Moody's rates Zephyr loans B2

Moody's Investors Service said it assigned a provisional B3 corporate family rating to Zephyr Midco 2 Ltd., a newly incorporated entity, which is expected to be the future holding company of ZPG plc, owner of the second largest U.K. property portal and leading U.K. price comparison websites.

The agency also said it assigned provisional B2 instruments ratings to the £740 million senior secured seven-year first-lien term loan B and the £150 million equivalent 6.5-year senior secured revolving credit facility, which are issued by Zephyr Bidco Ltd.

The outlook is stable.

As part of the transaction, Zephyr has also placed a £180 million eight-year senior secured second-lien term loan.

Upon the closing of this take-private transaction, the de-listing of ZPG plc from the London Stock Exchange and the repayment of the existing facilities, Moody's said it will withdraw the existing corporate family rating, probability of default rating and instrument ratings of ZPG.

The ratings reflect the group's very high opening adjusted leverage post leveraged buyout by Silver Lake, the agency said.

The ratings also consider the company's established brands and good position in the U.K. property classified market and among the top price comparison websites, Moody's said.

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