Moody's assigns Safari notes Caa2

Moody's Investors Service said it assigned a Caa2 instrument rating to the €258 million of backed senior secured notes due 2025 issued by Safari Holding Verwaltungs GmbH and a Ca instrument rating to the €130 million of subordinated PIK notes due 2026 issued by Dice MidCo Sarl.

Concurrently, the agency affirmed the Caa3 corporate family rating of Safari Beteiligungs GmbH (Lowen Play) and upgraded Lowen Play's probability of default rating to Caa3-PD/LD from Ca-PD. Moody's withdrew the €350 million of backed senior secured notes due 2022, issued by Safari Holding.

The outlook on Safari Beteiligungs and Safari Holding was flipped to positive from negative. The outlook of Dice MidCo also is positive.

The rating actions follow the completion of Safari Holding’s restructuring. “Moody's views Lowen Play's restructuring transaction as a distressed exchange, which is an event of default under Moody's definition of default. Moody's has appended Lowen Play's PDR of Caa3-PD with the /LD indicator given the restructuring transaction constitutes a limited default (/LD). The /LD indicator will be removed after three business days,” the agency said in a press release.

“The positive outlook reflects the potential for a recovery in operating performance that should enable the company to minimize the cash drain and avoid liquidity pressures in the next 12-18 months, although there are significant downside risks to this recovery,” Moody’s said.

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