Moody’s gives Ba2 to TransUnion term loan

Moody's Investors Service said it affirmed TransUnion, LLC’s Ba2 corporate family rating, the Ba2 rating for its existing senior secured credit facilities, including the upsized term loan A, and the SGL-1 speculative grade liquidity rating.

The agency also assigned Ba2 ratings to the company’s proposed $1.4 billion of new term loan B.

The outlook was changed to negative from stable.

Proceeds from the new term loans along with $400 million of the increased term loan A will be used to finance the pending acquisitions of Callcredit Information Group, Ltd., iovation and Healthcare Payment Specialists (HPS), which are expected to close around the end of the second quarter.

TransUnion LLC is an indirect subsidiary of TransUnion.

Assuming the acquisitions close at the end of the second quarter, Moody's said it estimates that TransUnion's total debt to EBITDA (Moody's adjusted) will increase to 4.9 times from 3.1 times.

The acquisitions will bolster TransUnion's product capabilities and enhance geographic footprint but integration risk will be high over the next 12 months, especially given that Callcredit is the largest acquisition for TransUnion, the agency explained.

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