Moody’s assigns NielsenIQ B1

Moody’s Investors Service assigned first time ratings to Intermediate Dutch HoldCo (NielsenIQ), consisting of a B1 corporate family rating and B1-PD probability of default rating. The agency also gave B1 ratings to senior secured credit facilities at NielsenIQ’s subsidiary, Intermediate Dutch Holdings (US Holdings).

“NielsenIQ’s B1 CFR is constrained by: (1) limited industry diversity, doing a majority of business with large consumer packaged goods (CPG) companies; (2) execution risk in rolling out its new technology platform as customers will be slow to switch; (3) soft revenue growth in the next 12 to 18 months because of the impact of the coronavirus pandemic, weak global economic conditions and competitive pressures; and (4) event risk of higher leverage given its ownership by private equity,” Moody’s said in a press release.

Nielsen Holdings plc announced the sale of NielsenIQ to a private equity firm, Advent International (Advent) for $2.7 billion. Proceeds from a new $950 million senior secured first-lien term loan B and new $650 million (euro equivalent) senior secured first-lien term loan B, both due in 2028, together with $989 million of common equity contributed by Advent, will be used to acquire NielsenIQ and to pay fees and expenses. A new $350 million senior secured revolving credit facility is not expected to be drawn at the close.

The outlook is stable for NielsenIQ and US Holdings. NielsenIQ’s cost reduction initiatives will improve EBITDA and allow it to cut leverage to 4x in the next 12 to 18 months despite weak global economic conditions, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.