Moody’s changes Datapipe to negative

Moody's Investors Service said it changed the outlook of Datapipe, Inc. to negative from stable following the company's announcement to raise an incremental $60 million of term loan debt for general corporate purposes.

The increased financial risk from the incremental debt will compound the company's business risk associated with its high growth rate and any use of proceeds that is not EBITDA accretive will negatively impact the company's ratings.

As part of this action, Moody's also affirmed Datapipe's B3 corporate family rating and B3-PD probability of default rating along with the B2 rating on its senior secured first-lien credit facilities and Caa2 rating on its second-lien term loan.

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