Moody’s rates Castle US, loan B2

Moody’s Investors Service said it assigned first time ratings to Castle US Holding Corp. with a corporate family rating of B2 and a probability of default rating of B2-PD. Moody’s also assigned a B2 rating to the borrower’s proposed senior secured first-lien credit facility, comprised of a $1.55 billion multi-tranche term loan and an undrawn $150 million revolver.

The proceeds of the new debt financing will be used to partially fund the $2.88 billion purchase (including fees) of Castle’s parent company, which does business as Cision by an affiliate of Platinum Equity LLC.

Castle’s B2 CFR is constrained by the company’s high pro forma debt/EBITDA of about 6x (Moody’s adjusted for operating leases) for the last twelve months ending Sept. 30. Debt leverage approaches 7x when expensing capitalized software costs, the agency said.

The outlook is stable.

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