Moody's rates Interactive Data loans B2

Moody's Investors Service said it assigned B2 (LGD3, 39%) ratings to Interactive Data Corp.'s $2.05 billion senior secured term loan B due 2021 and $160 million senior secured revolving credit facility due 2019 and downgraded indirect parent Igloo Holdings Corp.'s corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD and $350 million 8¼% senior PIK toggle notes due 2017 to Caa2 (LGD6, 94%) from Caa1 (LGD6, 93%). Igloo's SGL-2 speculative grade liquidity rating was affirmed. The outlook is stable.

Proceeds plus cash will be used to refinance the existing term loan B, redeem the 10¼% notes and pay an estimated $273 million dividend to equity sponsors Silver Lake Technology Management LLC and Warburg Pincus LLC, management and option holders.

The agency said the downgrade reflects the company's high pro forma financial leverage of 7.6 times total debt to EBITDA (Moody's adjusted as of Dec. 31) and aggressive financial posture as a result of the proposed dividend recapitalization.

At the same time, Igloo's B3 rating is supported by its good market position in fixed-income evaluated pricing and reference data services for financial institutions, Moody's said.

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