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.


See Moody’s Rating and Analysis on Vistage.

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