Providence Equity borrowed $385mm to buy Vistage in February 2018 – debt that Moody’s Investors Service rated as “B3.” According to Moody’s, “obligations rated B are considered speculative and are subject to high credit risk.”

Vistage’s Debt looks like this:

$25 million senior secured first-lien revolving credit facility due 2023 – rated “B2”
$260 million senior secured first-lien term loan due 2025 – rated “B2”
$100 million senior secured second-lien term loan due 2026 – rated “Caa2” ***

*** – According to Moody’s, “obligations rated Caa are Judged to be of poor standing and are subject to very high credit risk.

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See Moody’s Rating and Analysis on Vistage.

See Providence Equity’s History of Lawsuits, Low IRRs, and Government Investigations.