Moody's rates Extreme Reach loans Ba2

Moody's Investors Service said it affirmed Extreme Reach, Inc.'s B2 corporate family rating and B2-PD probability of default rating.

Moody's also said it assigned a Ba2 rating to the proposed $30 million five-year first-out senior secured revolver and B2 rating to the $410 million six-year first-lien senior secured term loan B.

The outlook is stable.

The proceeds from the new credit facilities will be used to repay about $403.4 million of existing debt, consisting of a $238.4 million outstanding first-lien term loan and $165 million outstanding second-lien term loan, Moody's said.

The ratings reflect its limited track record as a profitable company due to its brief operating history and relatively modest revenue base, the agency said.

It also considers the mature television ad distribution business and challenges of attracting advertising spend to that medium at a time when marketing channels are increasingly fragmenting and advertisers and advertising agencies are allocating more of their marketing budgets to online, mobile and social media platforms, Moody's said.

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