Moody's assigns United Talent B2

Moody's Investors Service said it assigned United Talent Agency, LLC a B2 corporate family rating, a B2-PD probability of default rating and a B2 first-lien credit facility rating, including a $100 million revolving credit facility and $300 million term loan.

“UTA's B2 CFR reflects the high leverage levels (6.4x including Moody's standard lease adjustments as of March 31, 2021) following the increase in debt related to the financing transaction as well as the impact of the coronavirus pandemic on the ability to hold live events and complete entertainment production as scheduled. Moody's expects operating results will continue to improve as the economy recovers from the pandemic due to strong demand for content. Media content revenue is recovering relatively quickly as media production continues to ramp back up to pre-pandemic levels while music revenues are expected to take longer to recover,” the agency said in a press release.

UTA will use the proceeds to repay about $185 million of debt, add about $82 million of cash to the balance sheet and fund a $25 million distribution to shareholders. A portion of balance sheet cash is expected to be used for future acquisitions to improve UTA's service offerings or diversify the business.

The outlook is stable.

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