Moody’s rates Redhalo loans B3

Moody’s Investors Service said it assigned B3 ratings to the new €430 million senior secured additional term loan B1 and the new €100 million additional senior secured term loan B2 co-borrowed by Redhalo Midco (UK) Ltd. and One.com Group AB.

The agency also affirmed the B3 corporate family rating and the B3-PD probability of default rating of Redhalo Midco (UK) Ltd. (group.ONE). Concurrently, the agency affirmed the B3 ratings of the outstanding senior secured bank credit facilities issued by the company, which comprise a €350 million senior secured term loan B and an €80 million senior secured revolving credit facility.

The company will use the term loan to finance the acquisition of dogado GmbH and pay transaction fees. The new €100 million B2 facility will be used for acquisitions and is expected to be undrawn at the outset of the transaction.

"Today's rating action reflects the fact that despite the increased leverage from the newly raised term loan, leading to a Moody's adjusted debt to EBITDA of 7x expected in 2022, pro forma for the acquisition of dogado, which is at the higher end of the revised leverage trigger set for the B3 rating, Moody's believes that the company will experience rapid de-leveraging within the next 12-18 months," said Dirk Goedde, a Moody's vice president, senior analyst and lead analyst for group.ONE, in a press release.

The outlook is stable.

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