The first- and second-lien loans for DoubleClick shot up in secondary trading last week with the $115 million eight year, second lien quoted at 103-104. An investor explained that the deal has 103 call protection while it is priced at LIBOR plus 7 3/4%. The $290 million first-lien "B" loan also traded high at 102-102 1/2. This is priced at LIBOR plus 4%. The facility also comprises a $290 million first-lien loan.
DoubleClick, which provides on-line advertising infrastructure to retailers, was bought by a group of investors including Hellman & Friedman and JMI Equity Fund for $1.1 billion. The sponsors are putting in $342 million of equity. Andy Ballard at Hellman & Friedman, did not return calls.
Moody's Investors Service assigned a B2 rating to the first lien and a Caa1 rating to the second lien. Moody's is taking into account the moderately high EBITDA leverage of about 5.4 times pro forma for the planned financing and the modest scale of the company.