Moody's rates Trader Interactive B3

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Trader Interactive, LLC. Moody's also gave B3 senior secured ratings to the company's proposed $410 million first-lien term loan due 2028 and $35 million revolving credit facility due 2026. This is the first time Moody's has rated Trader Interactive.

Term loan procceds will largely be used to refinance Trader Interactive's debt and also partially fund carsales.com Ltd.'s acquisition of a 49% stake from Trader Interactive's owners.

Trader Interactive's B3 CFR rating is constrained by an expectation that leverage (adjusted debt/EBITDA) will be sustained at about 7x through 2022 (projected to be 6.9x for 2022E, based on Moody's adjustments and projections), its small scale with revenue of $110 million and the risk of new entrants to the online marketplace.

The outlook is stable.

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