Moody’s rates Summer (BC) loan B2

Moody's Investors Service said it assigned a B2 rating to the $650 million senior secured term loan B extension (extended U.S. facility B) announced by Kantar Global Holdings Sarl, to be borrowed by its indirect subsidiary Summer (BC) Bidco B LLC and co-borrowed by Summer (BC) Holdco B Sarl.

The loan is an extension of a part of the outstanding $500 million senior secured term loan B2 and the $350 million senior secured term loan B, all under Summer (BC) Bidco B LLC. The extended U.S. facility B is due 60 months after the date on which the extension of the €1.235 billion senior secured term loan B3, announced on Jan. 30, becomes effective.

All other ratings including Kantar's B2 long-term corporate family rating are unaffected, the agency said.

“The transaction is leverage neutral. Moody's adjusted debt/EBITDA of 7.2x (excluding overdraft) for the last 12 months Sept. 30, 2023, places Kantar weakly in the rating category with little room for deviation from its deleveraging plan. The company has indicated it remains committed to reducing leverage ahead of any further acquisitions or increases in returns to shareholders. The agency expects Moody's adjusted gross debt/EBITDA of 6.4x (excluding overdrafts) for 2024, in the company's base case, as the company's cost initiatives deliver earnings improvement,” the agency said in a statement.

The outlook is stable.

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