Moody’s rates Vivid Seats B3, loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Vivid Seats Ltd.

The agency also assigned B2 ratings to the proposed $20 million revolver and $240 million first-lien term loan.

The outlook is stable.

Vista Equity Partners Management LLC will use the proceeds to help acquire 70% of Vivid Seats.

Moody’s said the B3 corporate family rating reflects Vivid Seats' concentrated business profile, small scale relative to larger online ticket sellers with greater financial resources, and limited operating track record following several years of accelerated revenue and profit growth.

In addition, Vivid Seats operates in an evolving online ticket exchange industry facing regulatory scrutiny (e.g., anti-scalping measures or price caps) and the potential that primary ticket issuers (e.g., artists, sports teams, and venues) may increasingly seek to capture a higher portion of the secondary market availability or the final ticket price, which could curb the volume of resale tickets.

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