Moody's: Zuffa unchanged

Moody's Investors Service said that Zuffa, LLC (Ba3/positive), which owns the Ultimate Fighting Championship brand, announced that its subsidiary Forza, LLC purchased certain assets of Explosion Entertainment, LLC. Zuffa's ratings are unchanged.

The purchase was primarily funded using availability under the company's bank revolver, which is now almost fully drawn, Moody's said. The company is generating strong free cash flow and Moody's anticipates that the company will increase external liquidity with paydowns of the revolver from free cash flow.

The transaction will increase the debt-to-EBITDA ratio by less than 0.2 times and leverage will remain comfortably under 3.0 times, the agency added.

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