Moody’s gives Equian CFR, facilities B2

Moody's Investors Service said it assigned Equian Buyer Corp. a B2 corporate family rating, a B2-PD probability of default rating and B2 instrument ratings on the new $325 million first-lien term loan and $30 million first-lien revolving credit facilities.

Term loan proceeds will be used to repay $291 million of existing, higher priced term loan debt, with the excess used for fees and for $21 million of incremental balance sheet cash.

The outlook is stable.

Moody’s said the B2 corporate family rating takes into account Equian's high, roughly 5.3 times debt-to-EBITDA leverage (including Moody's standard adjustments), small revenue scale and, given the acquisition-driven formation of the company in late 2015, its lack of significant, consistent operating history.

Equian's good free cash flow, good profitability, as well as Moody's-expected steady, mid-single-digit percentage revenue growth and profit expansion will allow for moderate deleveraging, the agency added.

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