Moody's gives Voodoo, loans Ba3

Moody's Investors Service said it assigned a first-time Ba3 corporate family rating and a Ba3-PD probability of default rating to Stan Holding SAS, 100% owner of Voodoo SAS. Concurrently, Moody's gave a Ba3 rating to the proposed €220 million term loan B and €50 million revolving credit facility both due 2025 and borrowed by Stan Holding.

In August, Tencent Holdings Ltd. reported acquiring a 26% equity stake in Voodoo, valuing the company at $1.4 billion. Loan proceeds and an equity injection from Tencent will be used to clean the current shareholder equity waterfall, refinance the club debt facilities and pay financing fees.

"The Ba3 rating reflects Voodoo's strong position in the growing mobile hypercasual game industry, the significant growth expected from its expansion in the APAC region and in new business segments such as casual games, and its modest and decreasing leverage, supported by strong EBITDA growth and solid free cash flow generation," said Agustin Alberti, a Moody's vice president, senior analyst and lead analyst for Voodoo, in a press release.

The outlook is stable. “The stable outlook on the ratings reflects Moody's expectation that Voodoo's operating performance will be solid, with strong revenue and EBITDA growth and solid free cash flow generation,” the agency said.

© 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.