Moody's gives Dodge Data loans B2, Caa2

Moody's Investors Service said it gave a first time B3 corporate family rating and B3-PD probability of default rating to Dodge Data & Analytics LLC (Dodge Construction Network). The agency also assigned a B2 rating to the planned first-lien credit facilities and Caa2 rating to the proposed second-lien term loan.

“The B3 CFR reflects the credit risks associated with DCN's relatively small revenue base, narrow market focus, and high debt/EBITDA leverage (Moody's adjusted). Moody's expects 2021 pro-forma adjusted debt leverage of approximately 7x (including cost synergies and expensing software development costs) that will decline modestly in 2022 driven by scheduled debt amortization and projected EBITDA expansion,” Moody’s said in a press release.

The proceeds plus $429 million of new and roll over common equity from funds managed by private equity firms Symphony Technology Group and Clearlake Capital Group, LP will be used to finance the recapitalization of DCN, excluding transaction fees, expenses and balance sheet cash.

The outlook is stable.

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