Moody’s ups Recorded Books PDR

Moody's Investors Service said it affirmed Recorded Books, Inc.’s corporate family rating at B3 and upgraded the probability of default rating to B3-PD from Caa1-PD in conjunction with announced acquisition of OverDrive, Inc. by KKR from Rakuten and its contemplated combination with RBdigital, which will be managed under the same organizational parent entity as RBmedia and audiobooks.com.

The acquisition of OverDrive will be financed through a planned incremental first-lien term loan debt raise of $350 million and equity contribution by the sponsor.

Moody's affirmed the B3 rating on the upsized $681 million first-lien senior secured term loan, and the $70 million committed pari-passu revolver, which will be upsized from $30 million.

The outlook is stable.

“RBmedia's B3 corporate family rating reflects governance risks with its private equity ownership, and aggressive financial policies that tolerate high leverage,” the agency said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.