Moody’s rates Dun & Bradstreet loans B2, notes B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Dun & Bradstreet Corp.

A B2 rating was also assigned to the company’s new $3.03 billion senior secured credit facility consisting of a $2.63 billion first-lien term loan due 2026, and a $400 million revolving facility due 2024.

In addition, Moody's assigned a B2 rating to new $500 million senior secured notes due 2026 and a Caa2 rating to new $850 million senior unsecured notes due 2027.

The company’s new $200 million 364-day repatriation facility is unrated by Moody’s.

The outlook is stable.

Dun & Bradstreet signed a definitive agreement to be taken private in a $7.1 billion leveraged buyout.

“The B3 rating is constrained by the private equity ownership which tolerates aggressive financial policy including high leverage and shareholder distributions,” the agency said in a news release.

“We project closing leverage to be between 9x-9.25x, with the ratio improving over the next 12-18 months to below 8x, assuming targeted synergies of over $200 million are realized.”

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