Moody's raises Octave Music

Moody's Investors Servic said it raised the Octave Music Group, Inc.'s corporate family rating to B2 from B3, probability of default rating to B3-PD from Caa1-PD and ratings on the senior secured first-lien bank credit facilities to B2 from B3. The outlook was revised to positive from stable.

“The ratings upgrade reflects Moody's expectation for Octave Music's continued solid operating performance through 2022 following strong year-over-year revenue growth, sequential EBITDA improvement and continued cost management as the global economy continues to recover from last year's economic recession. In the June quarter, the TouchTunes interactive jukebox segment experienced gross coinage outperformance (averaging 116% of Q2 2019 gross coinage) driven by mobile song price increases and strong consumer demand,” the agency said in a press release.

Octave Music reported Moody's adjusted EBITDA of around $25 million in the second quarter of 2021, or just more than twice the $14 million it reported in 2019’second quarter, Moody’s noted.

The positive outlook mirrors the pent up demand people have for going out to bars and restaurants where the company has its jukeboxes, Moody’s said.

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