S&P changes Datapipe outlook to stable

Standard & Poor's said it revised its outlook on Datapipe Inc. to stable from negative.

At the same time, the agency affirmed the B corporate credit rating.

The B issue-level rating and 3 recovery rating on Datapipe's first-lien term loan due March 2019 remain unchanged following the $30 million add-on and the CCC+ issue-level rating and 6 recovery rating on the company's second-lien term loan due September 2019 remain unchanged.

The company will use proceeds from the $60 million term loan add-ons to fund potential acquisitions.

S&P said the outlook revision and rating affirmations reflect its expectation that adjusted leverage will decline to below 7 times in 2015, benefiting from organic EBITDA growth and potential acquisitions. More specifically, the agency expects leverage (adjusted for operating leases) to decline to the mid-6 times area in 2015, from about 8.3 times in 2014, with the potential for further improvement thereafter.

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