Moody's assigns Marlink, loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Venga Holding Sarl, the top entity of the restricted group for Marlink as defined under its senior facilities agreement. Concurrently, Moody's gave B2 ratings to the planned $815 million senior secured term loan, also to the planned $150 million senior secured multicurrency revolving credit facility both to be issued by Venga Finance Sarl and co-borrowed by Venga Finance LLC.

Providence Equity Partners and Ardian as a co-investor agreed with Apax Partners SAS to acquire a majority stake in Marlink group.

"While Moody's adjusted leverage at transaction closing will be high, the B2 CFR reflects Marlink's future de-leveraging prospects supported by its strong market position amongst providers of satellite-connectivity focused on Maritime and Enterprise end markets, a recurring revenue base with high renewal rates and secular growth in demand for satellite-based connectivity," said Gunjan Dixit, a Moody’s vice president and senior credit officer and lead analyst on Venga Holding, in a press release.

"The B2 CFR assumes that Venga Holding will refrain from making sizeable debt-financed acquisitions over the next 12-24 months and focus on de-leveraging while successfully completing the integration of the recent acquisitions of ITC Global and certain Global Eagle Entertainment enterprise contracts," added Dixit.

The outlook is stable.

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