Moody’s gives B2 to Mosel, loan

Moody's Investors Service said it assigned a B2 corporate family rating to Mosel Bidco SE, the future holding company of German software provider Software AG (SAG). The agency also assigned a B2-PD probability of default rating and a B2 rating to the company's planned €1 billion equivalent senior secured term loan B, split into euro- and dollar-denominated tranches, and a €100 million senior secured revolving credit facility. The outlook is positive.

“Mosel Bidco SE's B2 CFR reflects the high starting leverage at closing of the acquisition, offset by the company's highly stable software revenues with significant customer stickiness and its strong growth profile in the digital business platform segment. SAG's cost reduction plans have the potential to significantly reduce leverage and improve cash flow over the next two years,” Moody’s said in a press release.

The proceeds will be part of a financing package used by private equity sponsor Silver Lake Partners to acquire SAG, repay debt, and pay transaction fees.

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