Moody's boosts Attachmate, gives loan B1

Moody's Investors Service said it assigned Attachmate Corp.'s proposed $40 million senior secured first-lien revolver and $825 million senior secured first-lien term loan, which will be used to finance its acquisition of Novell Inc. and refinance existing debt, B1 (LGD3, 37%) ratings.

Moody's said it raised the corporate family rating to B2 from B3 pending closing of the acquisition.

The outlook is stable.

The upgrade reflects the stronger capital structure and improved scale and diversification as a result of the Novell transaction, Moody's said.

The ratings consider that the transaction greatly increases the scale of the company to over $1.1 billion in revenue from $300 million and significantly broadens the company's portfolio of systems management and security software offerings, Moody's said.

The ratings also consider the challenges of integrating a company several times larger with a history of declining revenues will be substantial, the agency said.

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