Moody's assigns Taboola, loan B1

Moody's Investors Service said it assigned first time ratings to Taboola, Inc., including a B1 corporate family rating, a B1-PD probability of default rating and a B1 rating to the company's planned $300 million senior secured bank term loan facility. Moody's assigned an SGL-2 speculative grade liquidity rating, indicating good liquidity.

“The B1 CFR reflects Taboola's all-digital business model, global diversification, moderate financial leverage and strong cash flows. The company's growth prospects are supported by the ongoing shift of brand marketing spend and consumer purchase activity from traditional channels to online platforms. Counterbalancing these credit strengths are Taboola's exposure to potentially cyclical advertising revenue, intense industry competition, changing regulations towards greater privacy and the elimination of third-party cookies,” Moody’s said in a press release.

The proceeds will be used to partly fund the acquisition of Connexity for about $800 million. Taboola also plans to use about $260 million in cash and $240 million in common equity.

The outlook is stable.

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