Moody’s applies B2 to Daisy, notes

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Daisy Group plc.

Concurrently, the agency assigned instrument rating of B2 to the company’s proposed £385 million senior secured notes due 2021.

The outlook is stable.

Proceeds will be used to repay existing bank debt and to pay transaction costs related to the offering. As part of the transaction the company will also issue a £60 million super senior revolving credit facility (unrated) due 2021. At closing, the new super senior revolver is expected to remain undrawn and the company estimates to have a pro-forma cash balance of £64 million.

With £548 million of revenue and £85 million of adjusted EBITDA for the last 12 months to June 2016, Moody’s said Daisy has become one of the largest network-independent technology and communication service providers in the United Kingdom. In the last four years, excluding the acquisition of Phoenix IT Group in 2015, Daisy's revenue remained stable at around £350 million supported by several acquisitions and by limited or negative like-for-like organic growth.

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