Moody’s rates new GoTo loans, notes

Moody’s Ratings said it assigned B2 ratings to GoTo Group, Inc.’s $250 million senior secured first-lien first-out revolver expiring April 2028, $1.004 billion senior secured first-lien first-out term loans due April 2028, and $361 million 5˝% senior secured first-lien first-out notes due May 2028. The agency also assigned Caa2 ratings to $959 million senior secured first-lien second-out term loans due April 2028 and $420 million senior secured first-lien second-out notes due May 2028.

Concurrently, Moody's said it downgraded the company's existing 5˝% senior secured first lien notes due September 2027 to Caa3 from Caa1 reflecting its subordination to the new debts.

Finally, the agency affirmed GoTo’s Caa1 corporate family rating and Caa1-PD probability of default rating.

“The assignment of new debt ratings follows the company's completion of a series of exchange offers for its existing senior secured first-lien term loans due 2027 and senior secured first-lien notes due 2027. After completion, the senior secured first-lien term loans were fully repaid and $1.9 million senior secured first-lien notes remain outstanding.

The outlook is stable.

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