Moody’s ups ZoomInfo rates notes B3

Moody’s Investors Service said it upgraded ZoomInfo LLC’s corporate family rating to B1 from B2 and its probability of default rating to B1-PD from B2-PD. Simultaneously, the agency assigned a B3 rating to the new $300 million of senior unsecured notes due 2029 and upgraded its senior secured credit facility, revolver and term loan B, to Ba3 from B2.

ZoomInfo Technologies LLC and ZoomInfo Finance Corp. are the co-issuers of the notes, which will be guaranteed by ZoomInfo, the borrower under the senior secured credit facility. The speculative grade liquidity rating remains SGL-1. Moody’s changed the outlook to stable from positive.

“The upgrade of the CFR to B1 reflects ZoomInfo’s double-digit organic revenue and profitability growth and demonstrated operational resilience in the midst of the macroeconomic uncertainty. We expect for continued tailwinds in the sales and marketing information market, and that this demand combined with the company’s growing scale and solid bookings, will translate into much stronger credit profile over the next 12-18 months,” said Oleg Markin, Moody’s lead analyst for ZoomInfo, in a press release

ZoomInfo plans to use the proceeds with cash on hand to refinance a portion of its term loan B due 2026. The company is also expected to amend its credit agreement to increase its revolving credit facility’s borrowing capacity by $150 million to $250 million, extend the revolver expiration by two years to 2026 and reprice its term loan B.

The outlook reflects expectations ZoomInfo will continue to defend its niche market position in the B2B sales and marketing intelligence sector, maintain discipline approach to capital allocation and strong balance sheet, Moody’s said.

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