Moody’s assigns Red Ventures loan B1

Moody’s Investors Service said it assigned a B1 rating to Red Ventures, LLC’s planned $400 million incremental senior secured first-lien term loan.

The incremental loan will be pari passu with the $2.27 billion senior secured first-lien term loan, have the identical issuer, co-borrowers, maturity and collateral package and benefit from the same guarantors on a senior secured basis, Moody’s said.

Proceeds will be used to help finance the company’s acquisition of CNET Media Group from ViacomCBS for $500 million.

“Though Red Ventures’ pro forma gross debt will increase, the transaction is credit neutral due to the inclusion of CNET’s estimated LTM EBITDA and full twelve months impact of EBITDA from RV’s 2019 and 2020 acquisitions. Inclusive of the acquired EBITDA and planned CNET synergies, Moody’s estimates pro forma financial leverage will rise to roughly 6.2x total debt to EBITDA from 5.6x at 30 June 2020,” Moody’s said in a press release.

Red Ventures’ B1 corporate family rating and stable outlook remain unchanged, the agency said.

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