Moody’s rates Canyon loans B1

Moody's Investors Service said it confirmed Canyon Cos. Sarl's B2 corporate family rating, B2-PD probability of default rating and existing first- and second-lien debt ratings of B1 and Caa1, respectively.

The agency also assigned B1 ratings to Canyon’s proposed $75 million senior secured first-lien revolver (undrawn at closing) and $1.1 billion senior secured first-lien term loan.

The outlook is stable. This concludes a review for downgrade initiated on Dec. 18, 2015.

Moody’s said the B2 corporate family rating reflects Canyon’s high leverage and elevated integration risks, balanced by consistent free cash flow generation and the company's leading positions in the public relations (PR) software and database markets.

Through the merger of Vocus and Canyon, and the subsequent acquisition of Gorkana Group and now PRN, Canyon has established a leading position in various product and geographic segments of the PR software and communications markets. Their products provide critical software and contact database tools for PR professionals to target PR campaigns and track them across multiple media channels including publishing, broadcasting, blogs and social media, the agency said.

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