Moody’s rates Wood Mackenzie, loans B2

Moody's Investors Service said it assigned to Planet Holdco 2 Ltd. (Wood Mackenzie) a B2 corporate family rating and a B2-PD probability of default rating. The agency also assigned a B2 rating to Wood Mackenzie's US subsidiary Planet US Buyer LLC's planned senior secured bank credit facilities. The outlook assigned for both entities is stable.

“The B2 CFR reflects high financial leverage, modest interest coverage and Moody's anticipation of aggressive financial strategies. Wood Mac has a narrow industry focus, modest revenue scale and some customer concentration. Support is provided by a robust portfolio of must-have proprietary data that leads to high customer retention, strong pricing power and robust profitability rates.

“Moody's expectation for investment in renewable energy by WM's customers drives Moody's anticipation of an expanding addressable market for WM's products and services. Moody's anticipates debt to EBITDA around six times for the 12 months ended Dec. 31, 2023, and pro forma for the proposed refinancing will fall to below five times and thin EBITDA less capital expenditures to interest expense just above one time the same reporting period will expand to greater than 1.25 times over the next 12 to 18 months,” the agency said in a press release.

The proceeds of the planned $150 million revolver due 2029 and $1.315 billion term loan maturing 2031 will be used to refinance debt and pay transaction-related fees and expenses.

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