Moody's gives Legal Search B2

Moody’s Investors Service said it gave B2 ratings to Legal Search Holdings Pty Ltd. and its backed senior secured first-lien term loan. The agency also assigned a Caa2 rating to its backed senior secured second-lien term loan. ATI US Holdings Inc. and Legal Search Pty Ltd. are co-borrowers. The outlook is stable.

“The B2 rating reflects Legal Search's market-leading position; cash flow stability from predictable revenue, underpinned by contractual arrangements and high customer retention; and high barriers to entry, resulting from its entrenched first-mover advantage in delivering integrated systems,” Moody’s said in a press release.

However, the agency noted the credit profile is constrained by the company’s relatively small scale compared with global peer software companies, elevated leverage and acquisitive strategy.

Legal Search will use the loan proceeds to refinance all debt at LEAP Legal Software Pty Ltd., a wholly owned subsidiary of Australian Technology Innovators Pty Ltd. and for general corporate use.

“The stable outlook reflects Moody's expectation that the company will execute its organic and inorganic growth plans prudently, such that its financial profile remains within the rating thresholds and its liquidity buffer remains adequate,” the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.