Moody’s rates Exterion, loans B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B2-PD probability of default rating to Doubleplay I Ltd. (Exterion Media).

Concurrently, the agency assigned provisional B1(LGD3) ratings to the proposed senior secured £180 million term loan B due June 2022 and £40 million revolving credit facility due June 2021 – both of which will be borrowed by Exterion Media Holdings Ltd.

The outlook is stable.

Proceeds, along with £50 million of available cash will be used by the company to refinance around £54 million of outstanding debt, upstream £171 million to repay the existing shareholder loan and a dividend to shareholders Platinum Equity and pay the associated transaction costs.

Moody’s said the B1 corporate family rating reflects Exterion's: (a) Relatively small size in a market in which large peers compete for the same media contracts from local authorities; (b) exposure to the cyclical advertising industry; (c) high concentration in the U.K. and in London in particular; (d) a relatively high degree of contract concentration; and (e) high capex needs over the coming years stemming for the need to update a number of sites and faces.

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