Moody's affirms Zuffa

Moody's Investors Service said it affirmed Zuffa, LLC's Ba3 corporate family rating, Ba3 probability-of-default rating and Ba3 (LGD4, 50%) senior secured bank facility rating following the company's decision to boost its proposed term loan by $50 million.

The proposed term loan increase to $325 million from $275 million follows stronger-than-expected bank commitments for the loan.

The higher debt amount raises the company's debt-to-EBITDA leverage modestly in the projected period, but Moody's said the increase would not materially alter the company's credit profile because leverage is still expected to be low for its Ba3 rating.

The agency said it expects the company's debt-to-EBITDA ratio to improve to less than 3 times, due to an expanding revenue base and growth of the mixed martial arts industry.

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